Bitcoin (BTC) experienced one of its most significant rallies in May of this year. The original crypto’s price surged to an all-time high of $111,814 on May 22. BTC’s price has since faced a slight correction. The asset has fallen by 6.4% since its May peak.
Bitcoin Dips As BlackRock Sells
BTC’s incredible rally last month was likely due to a surge in institutional investments. BlackRock, the world’s largest asset manager, purchased more than $3 billion worth of BTC in May.
The recent price dip could be due to a dip in institutional funding. According to Arkham data, BlackRock sold BTC to stock up on Ethereum (ETH). The financial institution may have sensed incoming volatility. The sell-off may have spooked other market participants.
Also Read: BlackRock Sold Bitcoin And Bought Ethereum: Should You Too?
BTC’s price is down 0.6% in the daily charts, 3% in the weekly charts, and 5.7% in the 14-day charts. Despite the downtrend, the original crypto is up 10.8% over the previous month and 47% since June 2024.
The dip may have also been triggered due to macroeconomic factors. The US-China trade negotiations have introduced substantial uncertainty. The Federal Reserve has also yet to announce an interest rate cut for 2025. A rate cut could lead to a surge in risky investments as borrowing becomes easier. Bitcoin (BTC) and the larger crypto market could experience a big rebound if the Fed cuts rates soon.
Massive Rally Incoming
Buying the dip could be a good idea right now. Many anticipate Bitcoin (BTC) to gain momentum over the coming months.
According to CoinCodex, BTC will rally over the next two months. The platform anticipates the asset to hit a new all-time high of $177,917 on Aug. 22. BTC’s price will face a near 70% rally from current levels if it climbs to the $177,917 level.
According to Ark Investment CEO Cathie Wood, Bitcoin (BTC) will see a price surge very soon. Wood highlighted BTC’s scarcity as a reason for her belief. Wood has previously stated that BTC could even surge to a high of $1.5 million.
BTC to $1 Million
Wood is not the only person who believes BTC will breach the $1 million mark. Binance founder Changpeng Zhao (CZ) also shares a similar sentiment. In an interview, CZ stated that BTC could hit a high of $500,000 to $1 million this cycle.
Bitcoin (BTC) is among the best-performing assets of the last decade and a half. The original cryptocurrency has outperformed major tech stocks and commodities. The crypto industry has seen incredible growth over the last few years. The approval of 11 spot BTC ETFs in 2024 was a major milestone for the industry. Financial institutions could finally open their doors to the budding industry after years of crypto being pushed around.
BlackRock CEO Larry Fink has gone as far as saying that the US dollar may not remain the global reserve currency for long. In a 2025 letter to shareholders, Fink said that digital currencies like Bitcoin (BTC) could eventually become the global reserve currency. Fink’s words have a lot of weight to them because BlackRock is the world’s largest asset manager. The firm has around $11 trillion worth of assets under its management.
US President Donald Trump has also taken a lenient approach to the crypto industry. He even accepted Bitcoin (BTC) as payment for his presidential campaign. Trump has stated that he wants the crypto industry to flourish in the US. The pro-crypto administration could lead to a surge in investor confidence. We may be entering one of the most bullish phases in crypto history. The stage may be being set for BTC to finally breach the $1 million mark.
