Week of May 6 - 12, 2025
Bernstein analysts project that publicly listed companies worldwide could allocate over $330 billion to Bitcoin (BTC) as part of their corporate treasury strategies by 2029. Notably, the top 10 U.S. companies might collectively invest more than $5 billion, signaling a significant shift toward digital assets in corporate finance .
André Dragosch, Head of Research for Europe at Bitwise, suggests that if the U.S. government initiates Bitcoin purchases, the price could experience substantial growth. Projections indicate potential price points ranging from $200,000 to $500,000, with a possibility of reaching $1 million by 2029, contingent on continued global institutional adoption .
Michael Saylor announced that Strategy (formerly MicroStrategy) achieved a 13.7% return on its Bitcoin holdings, realizing over $5.8 billion in profit in Q1 2025. The company plans to raise an additional $4.2 billion through common stock and another $4.2 billion via debt instruments to further increase its Bitcoin reserves. Currently, Strategy holds 553,555 BTC, valued at approximately $53 billion, with an average acquisition cost of $68,459 per BTC .
In the Middle East, Abu Dhabi’s sovereign wealth fund ADQ, First Abu Dhabi Bank, and International Holding Company (IHC) have partnered to launch a stablecoin pegged to the UAE dirham. Regulated by the Central Bank of the UAE, this initiative aims to facilitate machine-to-machine and AI-driven transactions, enhancing the region’s digital economy infrastructure .
The Beijing government has unveiled its “Blockchain Innovation and Application Action Plan” for 2025–2027, aiming to integrate blockchain technology into key sectors such as healthcare, education, financial services, transportation, and artificial intelligence. This strategic move positions Beijing as a leader in blockchain adoption and innovation .
Meanwhile, the European Union is preparing to enforce new anti-money laundering regulations by 2027, which will prohibit banks, financial institutions, and digital asset service providers from offering privacy coins like Monero (XMR) and Zcash (ZEC). This measure is intended to prevent the use of such assets in illicit financial activities .
Bitcoin has experienced a slight pullback; however, the short-term trend remains bullish. Investors may consider buying opportunities near the support level at $93,000, with a short-term resistance target at $98,000. The overall outlook anticipates a retest of the previous all-time high at $110,000 within May 2025.
Ethereum (ETH)
Ethereum is currently trading sideways within a narrow range after breaking out of its downtrend line. The $1,500 support level serves as a critical point for entry and stop-loss considerations. A breakout above the $2,000 resistance could signal a shift toward a bullish trend; otherwise, the sideways movement may persist.
Balancer posted a 5.11% return over the past week, indicating potential for a bullish reversal. Maintaining a price above the $0.7450 support level could lead to continued recovery. A breakout above the $1.4463 resistance may confirm upward momentum.
Convex Finance achieved a 4.67% return over the past week. A strategic approach involves buying on pullbacks near the $3.08 support level, with a stop-loss if the price falls below this point. The $3.95 resistance serves as a potential profit-taking level.
Recent U.S. economic data presented mixed signals: Q1 GDP growth contracted by 0.3%, falling short of expectations, while Non-Farm Payrolls exceeded forecasts. This divergence resulted in a predominantly sideways movement in the cryptocurrency market.
Despite setbacks such as delays in ETF approvals and the Arizona governor’s rejection of a Bitcoin strategic reserve fund proposal, the market has demonstrated resilience. This suggests a strong recovery momentum, with the potential to retest previous highs.
Attention now turns to the Federal Open Market Committee (FOMC) meeting on Wednesday, May 7. The Federal Reserve is anticipated to maintain interest rates at 4.5%, aligning with market expectations. However, investors will closely monitor Chair Jerome Powell’s remarks for indications of a more dovish stance ahead of the June meeting, which could positively influence risk assets.
Investment strategy: Consider short-term trading opportunities in Bitcoin at key support levels, with the potential for a retest of previous highs in May. Additionally, gradual accumulation of large-cap altcoins poised to rebound alongside Bitcoin may be advantageous.
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