The price of Bitcoin remains near historic highs as a wave of macroeconomic and institutional forces continue to reshape the crypto landscape. As of May 12, 2025, Bitcoin is trading around $104,330, just shy of its record peak of $109,000 reached in December 2024.
What’s driving the Bitcoin price surge?
Several key developments are converging to support Bitcoin’s strong performance:
- U.S.-China trade détente: Bitcoin spiked early Monday following news that the U.S. and China reached a temporary agreement to ease tariffs. Treasury Secretary Scott Bessent confirmed that tariffs on Chinese imports will be reduced for 90 days—from 145% to 30%. This de-escalation has bolstered investor confidence across global markets, including crypto.
- Institutional demand rising: Regulated spot Bitcoin ETFs, introduced in early 2024, are pulling in record-breaking capital from institutional investors. BlackRock’s IBIT, in particular, is leading the pack in inflows.
- Political support: U.S. President Donald Trump has publicly declared himself the first “crypto president,” promising to roll back restrictive policies and establish a national Bitcoin reserve. These declarations have fueled speculation that state-level adoption could accelerate.
Bitcoin miners holding tight
New on-chain data shows Bitcoin miners are dialing back their sell activity. According to analytics firm Alphractal, the Miner Sell Pressure index is at its lowest since 2024. Miners are choosing to hold newly minted coins instead of selling, a signal that they expect the price to climb further.
Historically, low miner selling pressure has correlated with bullish momentum. While miners no longer dominate price action as they once did, their collective behavior remains a key market signal.
Market snapshot: May 12, 2025
| Asset | Price | 24h Change |
|---|---|---|
| Bitcoin (BTC) | $104,330 | -0.02% |
| Ethereum (ETH) | $2,567 | +2.57% |
| Solana (SOL) | $176.09 | +1.30% |
| XRP | $2.42 | +2.24% |
Bitcoin remains up nearly 10% over the past week, showing resilience despite short-term volatility.
What comes next for Bitcoin?
While the crypto market remains highly reactive to global news, analysts believe the structural foundation for Bitcoin’s long-term growth is strengthening. David Marcus, former PayPal president and crypto pioneer, said, “The bull case has never been stronger.”
Major factors to watch include:
- Continued ETF inflows
- Further regulatory clarity under Trump’s administration
- The possibility of sovereign bitcoin reserves
- Miner behavior post-halving
Bitcoin is no stranger to volatility. But with fresh capital, favorable regulation, and macroeconomic tailwinds, its current trajectory suggests further upside could still be ahead.
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