**Key Takeaways:**
 * Bitcoin price holds above $100,000, driven by &#8220;risk-on&#8221; sentiment after the CBOE Volatility Index (VIX) dropped to 20. 
 * The Bitcoin Bull Score Index surged to 80, and the Fear &amp; Greed Index suggests growing optimism, with historical patterns indicating potential for further price gains.
Bitcoin (BTC) price continues to consolidate higher above $100,000 after the 
CBOE Volatility Index (VIX) dropped to its 30-year average of 20, down from a 
peak of 60 earlier in 2025. This decline follows a US-China trade deal on May 
12, which introduced a 90-day tariff pause and a 115% reduction on both sides.
_CBOE Volatility Index chart. Source: X.com_
The agreement has fueled a &#8220;risk-on&#8221; sentiment, boosting Bitcoin and equities 
as investors lean into higher-risk assets, according to Bitcoin network 
economist Timothy Peterson. The analyst said,
&gt; &#8220;$VIX dropped substantially yesterday on news of a potential China trade 
&gt; deal. It is now at &#8216;normal&#8217; levels. This will be a &#8216;risk on&#8217; environment for 
&gt; the foreseeable future.&#8221;
Adding to the bullish sentiment, the US Consumer Price Index (CPI) inflation 
rate dropped to 2.3% year-over-year in April 2025, the lowest since February 
2021, down from 2.4% in March and below consensus forecasts of 2.4%. This 
softer-than-expected CPI reading signals easing inflationary pressure, 
potentially increasing the likelihood of Federal Reserve interest rate cuts in 
2025, assuming other economic indicators align.
With respect to the current macroeconomic dynamics&#8211;lower volatility, cooling 
inflation, and a trade war truce- it creates favorable market conditions for 
Bitcoin.
Earlier this month, Peterson noted that BTC could reach $135,000 within 100 
days, citing a drop in the CBOE Volatility Index (VIX) from 55 to 25, 
signaling a &#8220;risk-on&#8221; environment. With 95% accuracy, his model links low VIX 
levels to increased investor confidence in riskier assets like Bitcoin.
_**Related: Bitcoin shrugs off US CPI win as Binance CEO says BTC &#8216;leading 
pack&#8217;**_
## Bitcoin bull score index reaches yearly high
After posting one of its least bullish phases in two years during April, 
Bitcoin sentiment flipped drastically to its highest reading in 2025. Data 
from CryptoQuant indicated a dramatic rise in the Bitcoin Bull Score Index, 
soaring from 20 to 80, a level historically associated with significant price 
surges.
_Bitcoin: bull score index. Source: CryptoQuant_
This shift, driven by rising spot demand outpacing supply, reflects patterns 
observed after the April 2024 halving, suggesting Bitcoin could be poised for 
further gains.
Likewise, Bitcoin researcher Axel Adler Jr noted that while the Bitcoin Fear &amp; 
Greed Index is climbing, currently at 53.3%, it remains below the &#8220;overloaded&#8221; 
zone above 80%. The analyst discussed the possibility of a market &#8220;upswing,&#8221; 
expressing hope for a successful test and surpassing Bitcoin&#8217;s all-time high 
near $110,000.
_Bitcoin &#8216;s Fear &amp; Greed Index. Source: X.com_
 _**Related: Bitcoin profit taking at $106K the first stop before new all-time 
BTC price highs**_
This article does not contain investment advice or recommendations. Every 
investment and trading move involves risk, and readers should conduct their 
own research when making a decision.

Market volatility indicator still points to $135K Bitcoin within 100 days — Analyst

Two US senators are calling on Treasury Secretary Scott Bessent to &#8220;exercise 
[the department&#8217;s] authority&#8221; and change a provision affecting taxes on 
corporate holdings of digital assets.
In a May 12 letter, Senators Cynthia Lummis and Bernie Moreno suggested 
Bessent had the authority to change the definition of &#8220;adjusted financial 
statement income&#8221; under existing US law in a way that could reduce what 
digital asset companies pay in taxes. The proposed adjustment was suggested as 
a way to modify a provision of the Inflation Reduction Act, signed into law in 
2022.
&#8220;Our edge in digital finance is at risk if US companies are taxed more than 
foreign competitors,&#8221; said Lummis in a May 13 X post.
_May 12 letter to Treasury Secretary Scott Bessent. Source:__Cynthia Lummis_
According to the two senators, the proposed modification would provide &#8220;relief 
to corporations that invest in digital assets.&#8221; Lummis has been one of the 
most outspoken digital asset advocates in Congress, while Moreno took office 
in January after crypto-backed political action committees spent roughly $40 
million to support his 2024 Senate race.
_**Related:**__**Arizona governor kills two crypto bills, cracks down on 
Bitcoin ATMs**_
The Inflation Reduction Act, which went into effect in 2023, imposes a 15% 
minimum tax on companies that report more than $1 billion in profits for three 
consecutive years. The measure would seemingly include unrealized crypto gains 
and losses, leading to Lummis&#8217; and Moreno&#8217;s calls for the Treasury Department 
to &#8220;act swiftly.&#8221;
## Senate awaiting second vote on stablecoin bill
The call from the two senators came as lawmakers in the Senate are expected to 
consider another vote on the Guiding and Establishing National Innovation for 
US Stablecoins, or GENIUS Act &#8212; legislation to regulate payment stablecoins 
in the US. A motion for consideration failed to move forward in the Senate on 
May 8 due to Democratic lawmakers pushing back on Donald Trump&#8217;s ties to the 
crypto industry.
Lummis, one of the bill&#8217;s co-sponsors, suggested that she would continue to 
support digital asset regulation. The Senate could take up another vote in a 
matter of days.
_**Magazine:**__**Best and worst countries for crypto taxes &#8212; plus crypto tax 
tips**_

US lawmakers call for change in corporate digital asset taxes

Can a 90-day US-China trade truce really reshape global liquidity — and push 
Bitcoin toward a new all-time high? Markets exhale as tariff pressures ease On 
May 11–12, the United States and China announced a temporary truce in their 
ongoing…

Why the US-China trade truce could be Bitcoin’s biggest macro tailwind since 2020

The Bitcoin price is once again at the center of attention as it continues its 
upward climb in what appears to be the final phase of the current bull cycle. 
Riding on the back of macroeconomic optimism and institutional interest, 
Bitcoin is showing renewed strength, with technical analysis forecasting a 
final pump to a new ATH above $120,000. Once the flagship cryptocurrency 
completes this move, its price is forecasted to crash down to $60,000, 
signaling the onset of the bear market. Bitcoin Price To Surpass $120,000 In 
2025 Xanrox, a crypto analyst, has shared a new Bitcoin price prediction on 
TradingView, forecasting a bullish run to a new all-time high and a subsequent 
crash to major lows. Expanding on his optimistic projection, the crypto 
analyst has confirmed that Bitcoin is in the final stages of this bullish 
cycle, meaning that the cryptocurrency is gearing up for its most explosive 
price surge yet. Related Reading: ‘The Big Short’ Coming For Bitcoin? Why BTC 
Will Clear $110,000 The analyst shared an Elliott Wave technical chart, 
indicating that Bitcoin is currently in Wave 3 of a five-wave pattern forming 
an ending diagonal. This structure typically marks the final stage of a 
bullish cycle, just before a major correction. Xanrox predicts that Bitcoin 
will eventually enter two final wave stages (Wave 4 and 5) before reaching a 
cycle peak. According to his analysis, the ideal range for this bull run lies 
between $120,000 and $125,000. More precisely, he highlights a Fibonacci 
Extension target of 1.618 at $122,069 as the potential top of this bull cycle. 
The TradingView analyst also notes that this Fibonacci target is the best 
price to sell and prepare for the bear market that’s projected to follow. 
Notably, this price level aligns with a long-term trend line that stretches 
from Bitcoin’s 2017 peak to the 2021 top and the next forecasted 2025 ATH. 
Strengthening the analyst’s conviction of a potential rally to $122,069, 
Bitcoin’s historical price behavior reveals a consistent relationship with the 
50-week Simple Moving Average (SMA). The analysis highlights that the 
cryptocurrency has repeatedly bounced off or corrected to this moving average 
during key turning points in past cycles. This pattern adds further 
credibility to the bullish outlook. Next Up: 50% Price Crash To $60,000 
Despite Xanrox’s optimistic price projection for 2025, the analyst warns of an 
impending Bitcoin market crash in 2026. Once the cryptocurrency completes its 
final bullish wave and tops out, the analyst anticipates a steep correction, 
potentially dragging the price down to $60,000. This projected 50% drop 
mirrors past cycle declines, particularly the sharp correction seen in the 
2018 and 2022 bear markets. Related Reading: Bitcoin Price To $150,000: BTC Is 
Mirroring Bullish Fractal From 2020 The analyst’s chart identifies this 
looming price crash as part of the natural end to Bitcoin’s 4-year cycle, 
emphasizing that buying at the projected peak of $122,069 could expose 
investors to significant downside risk. Instead, Xanrox recommends preparing 
for this bearish transition by exiting the market within the previously 
outlined sell zone and waiting for a re-entry opportunity during the expected 
2026 dip. Featured image from Getty Images, chart from Tradingview.com

Analyst Predicts Bitcoin Price Surge To $120,000 And Then A 50% Crash To $60,000, Here’s When

CoinShares, a digital asset investment firm with offices in the United States 
and Europe, said its net profit fell to $24 million in the first quarter of 
2025, a 42.2% decrease from the same period a year ago.
Although CoinShares&#8217;s profits and EBITDA remained positive in Q1 2025, the 
margins declined compared to the same period in 2024. Last year, CoinShares 
posted a net profit of $41.5 million and an EBITDA of $35.5 million in the 
first three months. Year-over-year, CoinShares&#8217;s net profit dropped 42.2% and 
its EBITDA fell 15.5%.
The firm&#8217;s ETPs contributed to the quarter&#8217;s performance. For Q1 2025, 
CoinShares&#8217;s ETPs saw net inflows of $268 million, with $202 million coming 
from its Physical Bitcoin (BITC) ETP. Revenue related to assets under 
management increased from $24.5 million to $29.6 million, a rise of 20.8%.
Year-to-date, CoinShares&#8217;s stock is down 9.4%, _according_ to Google Finance.
_CoinShares disclosed a $30 million EBITDA in Q125, despite market turbulence. 
Source. CoinShares_
In a letter to shareholders, the company&#8217;s CEO, Jean-Marie Mognetti, said 
macroeconomic headwinds during the quarter exceeded market movements. &#8220;What we 
are witnessing is not mere market volatility &#8212; it is a wholesale 
transformation of the global economic order.&#8221;
According to Mognetti, Ether&#8217;s underperformance over the quarter led to $23 
million in outflows from its CoinShares Physical Staked Ethereum ETP (ETHE). 
&#8220;Due to broader market corrections &#8212; including a 12.1% decline in Bitcoin 
prices &#8212; assets under management (AuM) fell 10.7%, closing Q1 at $1.52 
billion.&#8221;
_**Related:**__**Robinhood beats Q1 estimates despite revenue, crypto trading 
dip**_
## Crypto companies show mixed results during market upheaval
The first wave of Q1 2025 earnings from crypto firms suggests a broadly 
negative quarter, with revenue declines across sectors.
Coinbase revenue, for instance, fell 10% quarter-over-quarter in Q1 2025, as 
transaction revenue plummeted 19% to $1.3 billion. Kraken, another US-based 
cryptocurrency exchange, saw its revenue decline 7% from Q4 2024. Michael 
Saylor&#8217;s Bitcoin treasury company, Strategy, also missed Wall Street&#8217;s 
estimates, alongside Bitcoin miner Core Scientific.
The quarter was marked by high volatility across financial markets after US 
President Donald Trump unleashed global tariffs on trade partners, dragging 
the BTC price to lows of $78,000 over the period. Ether (ETH) also experienced 
a significant pullback.
_**Magazine: Financial nihilism in crypto is over &#8212; It&#8217;s time to dream big 
again**_

Cryptocurrency price in AUD