Will Bitcoin Smash $115K This May? Traders Make Bold Bets on a Breakout

Bitcoin is experiencing renewed interest as traders gain confidence in its possible break of the all-time high this month. Positive technical triggers, falling inflation numbers, and increasing institutional demand are driving a clear turnaround in market mood. Current activity in prediction platforms and derivatives markets shows investors are front-running more upside in the weeks ahead.

Polymarket, a decentralized prediction platform, reports that 52% of users think Bitcoin will be above $115,000 this May. The other 26% anticipate the price to be over $115,000, and 13% predict the price to reach at least $90,000. These figures reflect strong bullish sentiment among participants focused solely on short-term price action.

Source: Polymarket

CPI Drop Boosts Crypto and Bullish Sentiment

On Tuesday, May 13, the U.S. released its April Consumer Price Index (CPI) data, revealing that annual inflation had eased to 2.3% from 2.4% in March, the lowest since February 2021. This softer-than-expected reading alleviated pressure on risk assets, with cryptocurrencies like Bitcoin experiencing modest gains. The crypto market had a fast response on May 13 after the Sunday release of the U.S.

Market sentiment also shifted sharply into bullish territory, with the Crypto Fear and Greed Index climbing to 73, indicating strong investor appetite for risk. The return of confidence comes after weeks of caution, which developed due to concerns over macroeconomic risks and geopolitical concerns.

Technical indicators still strengthen the current uptrend. The 50-day and 200-day moving averages are all moving up, signs of support for the recent rally. A temporary consolidation is anticipated by some traders, while the overall structure is positive.

Source: TradingView

In the futures market, open interest stands at $67.47 billion, which is close to the $70 billion mark. More than $36M in short positions were liquidated over the last 24 hours.

Related: Bitcoin Leads Crypto Price Correction as US-China Tariff News Triggers $521 Million in Liquidations

The OI-weighted funding rate stands at 0.0075%, which indicates continued bullish dominance in the derivatives markets.

Source: Coinglass

With technicals, sentiment, and institutional activity becoming harmoniously bullish, Bitcoin is set to challenge its old all-time high. Now, traders are closely watching the confirmation of the next breakout.