Bitcoin Sees Strong Price Surge in May, Reaching Highest Level Since February

Bitcoin's Price Surge in May

Bitcoin kicked off May with a significant price surge, reaching its highest level since late February. The leading cryptocurrency climbed from a low of $94,115 to $97,483 on May 1, marking a strong recovery after two days of decline. At press time, Bitcoin was trading at $96,903, up 0.24% over the past 24 hours, with intraday highs of $97,059. This rebound has reversed weekly losses, with Bitcoin now up 2.49% over the past seven days.

Recovery and Profitability for Investors

Bitcoin's recent price jump has restored profitability for short-term holders (STHs). According to on-chain analytics firm Glassnode, the cost basis ribbon for STHs indicates that investors holding BTC for over one month have returned to profit. This shift could ease sell pressure from older STHs and signal early signs of positive market momentum if sustained. Bitcoin has recovered nearly 21% from its February low of $78,900 and roughly 28% from its early April low of $75,000.

Macroeconomic Context and Fed Policy

The price surge coincides with stable macroeconomic conditions. Nonfarm payrolls rose by 177,000 in April, slightly below the revised March figure of 185,000 but above the Dow Jones estimate of 133,000. The unemployment rate remained steady at 4.2%, reflecting a stable job market. Markets are eyeing the Federal Reserve's policy meeting on May 6-7, with expectations of no rate change next week but potential cuts starting in June. This backdrop has contributed to renewed investor confidence in risk assets, including Bitcoin.