Bitcoin (BTC) is poised for a potential surge, with analysts predicting it could hit the $100,000 mark by June. This optimism is fueled by renewed buying activity from Strategy and a notable decline in stablecoin dominance, indicating that liquidity is gradually returning to the cryptocurrency market.
Michael Saylor’s firm, Strategy, is expected to purchase at least 3,172 BTC this week, funded by recent sales of their preferred stock, known as Stretch (STRC). The stock has recently reclaimed its critical $100 par value, significantly enhancing the company’s capacity to fund Bitcoin purchases. As of Wednesday, STRC was trading slightly above $100, and it has reportedly enabled Strategy to accumulate substantial Bitcoin assets this week, equating to about 235% of Bitcoin’s newly mined supply in the same timeframe.
Since February, Strategy has added approximately 101,700 BTC to its holdings, growing its total to nearly 819,000 BTC as of May 11, up from about 717,000 BTC. This accumulation has coincided with a broader recovery for Bitcoin, which has risen more than 40% in this period. Market analyst Pio Vincenzo noted that Strategy has raised around $5.58 billion year-to-date and may potentially secure another $20 billion by the year’s end.
Another factor driving Bitcoin’s prospects is the decline in combined market dominance of stablecoins, specifically Tether’s USDT and Circle’s USDC. According to fractal analysis, stablecoin dominance is nearing a resistance zone of 10%–11%, which often precedes a capital rotation back into Bitcoin and other cryptocurrencies. Historical patterns reveal that falls in stablecoin dominance frequently correlate with significant Bitcoin price increases. Between 2022 and 2024, for example, stablecoin dominance plummeted nearly 70% while Bitcoin surged around 600%. A similar trend was observed in 2021 when a 54% decline in stablecoin dominance led to BTC’s 525% gains.
As stablecoin dominance has dropped by an average of 61.3%, Bitcoin has rallied approximately 560% in similar periods, suggesting that BTC is likely to experience a sustained bullish trend. Analysts indicate that a rise to $100,000 within this quarter seems plausible.
However, there are some signs of caution. Bitcoin’s upward movement has been losing momentum as it approaches its 200-day exponential moving average, currently positioned around $82,000. If BTC fails to exceed this key resistance level, the potential for sell-offs increases, alongside the formation of a rising wedge pattern that could see prices dipping below $70,000 by June. This scenario sets the stage for a critical period ahead in Bitcoin’s trading trajectory.
