Bitcoin has achieved a historic milestone with its highest weekly close ever, reinforcing its position as a dominant force in the global financial landscape. As of midnight UTC on May 18, Bitcoin closed just below $106,500**, marking the sixth consecutive week of gains and bringing the asset within striking distance of its all-time high of **$109,358 set in January 2025. At the time of writing, Bitcoin is trading around $104,730, up 2% over the past 24 hours and less than 3% away from its peak.
This momentum follows an equally significant event: Bitcoin’s highest-ever daily closing price, also recorded on May 18. While this wasn’t the largest single-day percentage gain in its history, the psychological impact of closing above $105,000 for the first time cannot be overstated.
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Six Weeks of Sustained Gains Signal Strong Institutional Demand
The current six-week rally mirrors Bitcoin’s explosive performance in November, when it surged by $30,000** across three of its most powerful weekly candles on record. Since the start of May, Bitcoin has added approximately **$12,000, climbing from $94,000** to over **$106,000 before experiencing a minor pullback.
This sustained upward trajectory suggests growing institutional adoption and increased confidence among long-term holders. Analysts are observing structural shifts in trading behavior, particularly in U.S.-based platforms where demand appears to be intensifying.
Coinbase Premium Returns Amid Rising U.S. Demand
A notable development is the return of the Coinbase premium, a metric tracked by Arete Capital partner “McKenna.” This indicator compares the price of Bitcoin on Coinbase (BTC/USD) versus Binance (BTC/USDT), highlighting differences in regional demand and liquidity.
The reemergence of a positive premium on Coinbase—especially during off-peak hours like Sunday night—has raised eyebrows.
“The strength of this bid on a Sunday night feels strange,” McKenna noted. “It’s possible someone knows some important news dropping next week.”
Such anomalies often precede major market-moving events, whether regulatory clarity, macroeconomic shifts, or institutional product launches such as spot Bitcoin ETF approvals or treasury allocations by major corporations.
Technical Momentum Builds Toward New All-Time High
Technical analysts are closely watching key resistance levels as Bitcoin prepares for another potential breakout. Rekt Capital emphasized that a daily close above $105,000 could establish a "brand new higher high," reinforcing bullish momentum.
Scott Melker, a well-known crypto investor, confirmed the significance of the May 18 close:
“Bitcoin just had its highest daily candle close... ever.”
This technical achievement reflects strong buying pressure at critical junctures and signals that short-term traders and long-term hodlers alike are aligning behind upward price action.
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Bitcoin's Long-Term Growth Trajectory: CAGR Cooling But Still Unmatched
Despite the excitement surrounding short-term price action, deeper macro trends suggest Bitcoin is maturing as a global asset class. On May 18, on-chain analyst Willy Woo examined Bitcoin’s compound annual growth rate (CAGR) and observed a gradual decline—a natural consequence of increasing market capitalization.
As Bitcoin absorbs more capital, its growth rate slows, much like traditional macro assets. Woo compared this trend to historical monetary expansion (around 5%) and GDP growth (about 3%), projecting that Bitcoin’s long-term CAGR will stabilize near 8% over the next 15 to 20 years once equilibrium is reached.
“BTC is now traded as the newest macro asset in 150 years,” Woo stated. “It'll continue to absorb capital until it reaches its equilibrium.”
He added:
“Until then, enjoy the ride because almost no publicly investable product can match BTC performance long term, even as BTC's CAGR continues to erode.”
This perspective underscores Bitcoin’s evolution from a speculative digital currency into a foundational store of value—often referred to as “digital gold.”
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Why This Rally Is Different
Unlike previous bull runs driven largely by retail frenzy or speculative mania, the current uptrend shows hallmarks of structural demand:
- Increased participation from hedge funds and family offices
- Growing integration into traditional finance (TradFi)
- Regulatory clarity in key markets like the U.S. and EU
- Expansion of financial infrastructure (custody solutions, derivatives, yield products)
All these factors contribute to a more resilient and sustainable price foundation.
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Frequently Asked Questions (FAQ)
Q: What was Bitcoin’s highest weekly close?
A: As of May 18, Bitcoin closed just below $106,500—the highest weekly close in its history.
Q: How close is Bitcoin to its all-time high?
A: Bitcoin is currently less than 3% below its all-time high of $109,358 reached in January 2025.
Q: What is the Coinbase premium and why does it matter?
A: The Coinbase premium measures the price difference between BTC/USD on Coinbase and BTC/USDT on Binance. A rising premium indicates stronger U.S. dollar demand and potential institutional buying pressure.
Q: Is Bitcoin’s growth slowing down?
A: Yes, Bitcoin’s compound annual growth rate (CAGR) is gradually cooling as it matures into a macro asset. However, it still outperforms most traditional investment vehicles over the long term.
Q: Can Bitcoin surpass $110,000 in 2025?
A: Given current momentum and institutional interest, many analysts believe a new all-time high above $110,000 is achievable if market conditions remain favorable.
Q: What drives Bitcoin’s price in the long term?
A: Key drivers include scarcity (21 million cap), increasing adoption, macroeconomic uncertainty, inflation hedging, and integration into global financial systems.
With technical strength, growing institutional backing, and strong on-chain fundamentals, Bitcoin continues to solidify its role as a cornerstone of modern portfolios. Whether you're a seasoned trader or a long-term believer, now is a critical moment to stay informed and positioned for what may be the next leg up in the world’s most influential digital asset.