Bitcoin clears $82,000: three reasons it ran higher in May
Bitcoin hit $82,320 on May 6, the highest level since January, fueled by record ETF inflows and a wave of short liquidations.
- Bitcoin hit $82,320 on May 6, the highest level since late January 2026.
- In April, US spot Bitcoin ETFs pulled in $2.44 billion, the strongest month since October 2025.
- Over $300 million in short positions were liquidated in 24 hours, pushing the price further up.
- The price has since corrected to around $77,300 by late May, about 39 percent below the October record of $126,198.
Has Bitcoin started a new bull cycle, or did it just briefly surface before sinking again? The real numbers put the answer somewhere in the middle.
The largest cryptocurrency closed May 6 trading at $82,320.02, a gain of 1.27 percent on the previous day and the highest level since January 31 this year. The move was immediately flagged as a psychological turning point, showing Bitcoin could halt the slide that had run since February.
Twenty days later the price is already correcting toward $77,300, but analysts read the May episode as the first real sign of a fresh uptrend in 2026.
Reason 1: record ETF inflows
The clearest driver of the rally. US spot Bitcoin ETFs pulled in $2.44 billion in new positions in April, the strongest monthly print since October 2025.
The leading ETFs running the numbers are:
- BlackRock iShares Bitcoin Trust, with over half of the total monthly sum
- Fidelity Wise Origin Bitcoin Fund
- Ark 21Shares Bitcoin ETF
The reason behind the inflow is not just sentiment. Large pension and hedge fund institutions are slowly rewriting their allocation policy, shifting a few percent of portfolios into Bitcoin as an “alternative asset class”. When institutions step in, retail traders tend to follow a few weeks later.
Reason 2: short squeeze after the move above 80,000
The second driver is purely mechanical. Plenty of traders opened short positions in February and March (betting the price would drop), figuring Bitcoin would not break back above $80,000 quickly.
When the price cleared that line on May 5, automatic liquidation of short positions wiped out over $300 million in closed positions in 24 hours. Roughly 99,681 traders were caught on the wrong side of the trade.
Technically, when a short is liquidated, the system has to buy Bitcoin on the open market to close it. That forced buyer pushes the price further up, which then triggers fresh liquidations. Once that chain reaction starts, it is hard to stop until the initial frenzy burns out.
Reason 3: geopolitical relief
The third factor is harder to measure precisely, but easy to spot. The first week of May brought lower tensions between major powers in several key conflict zones.
The mix of institutional capital arriving, the short squeeze mechanics and easing geopolitical tensions created an ideal blend for a one-week price spike.
Bitcoin in that context works two ways. When risk rises, some capital flees toward it as an alternative to traditional asset classes. When risk eases, some capital enters as a speculative position. May delivered the second pattern.
Is $126,000 reachable in 2026?
The October record of $126,198 stays well out of reach. Bitcoin currently sits about 39 percent below that level. To return to the top, another serious uptrend or a shift in the macro backdrop would be needed.
Analysts tracked by Bloomberg, JPMorgan and Standard Chartered are calling a year-end target between $90,000 and $110,000. Forecasts above $120,000 stay rare and cautious.
In the short term, the key levels are:
- $75,000 as technical support, with another leg down toward 70,000 if it breaks
- $85,000 as resistance, with the road opening toward 100,000 if it clears
Anything above those figures is purely speculative, though that has always been true of Bitcoin.
What this means for buyers in Serbia
Bitcoin is fully legal in Serbia, though not an official means of payment. Most domestic users buy it through platforms like Bit.team, Bitfond or foreign exchanges such as Binance and Kraken.
Fees for smaller purchases of 100 to 500 euros run from 0.5 to 2 percent. For amounts over 1,000 euros, the NBS reporting obligation kicks in through the bank if the purchase runs on a domestic card.
The capital gains tax on cryptocurrency in Serbia is 15 percent on realized profit. In practice, if you bought Bitcoin in January at $70,000 and now sell at $80,000, tax is owed on the $10,000 difference.
For anyone already holding a crypto portfolio, this rally is a good window for partial profit-taking. For anyone still thinking about entry, the advice stays the same as last year: never put more into Bitcoin than you are ready to lose entirely.
Did you use May to adjust your positions, or are you waiting for the price to climb further before making a call?
