Bitcoin Price Forecast – Why $120K Is A Realistic Short-Term Target

Highlights:

• Bitcoin is moving higher marginally, even as volumes point to caution
• Bitcoin traders are likely taking a cautious approach ahead of the US inflation data print
• Rising Bitcoin adoption by institutions is likely to continue supporting the price

Bitcoin is on another slow day, continuing the relative lack of major price action throughout the week. At the time of going to press, Bitcoin was trading at $108,743, down by 0.87% in the day. However, trading volumes have made a slight uptick in the day, up by 3.08% in the day to a high of $58.15 billion. This could indicate investors taking advantage of the ongoing price stability to accumulate Bitcoin. Such would be in anticipation of another price breakout that takes Bitcoin to new all-time highs. There are multiple indicators that investors are accumulating Bitcoin at its current price point.

Institutions Aggressively Buying Bitcoin

One of them is the number of companies not only buying Bitcoin but also raising debt to buy it. On Monday, May 27, The Blockchain Group, a French company, announced that it was issuing a bond allowing it to buy 590 Bitcoin. Last week, a Hong Kong-based company bought 21 Bitcoins and announced plans to buy 5000 Bitcoins in the next five years. However, the big news of the day in terms of adoption is by World Liberty Finance, a company associated with President Donald Trump.

The Blockchain Group announces a convertible bond issuance of ~€63.3M to pursue its Bitcoin Treasury Company strategy, bringing its total potential holdings to ~1,437 BTC after completion

Full Press Release (EN): https://t.co/Vw2mGH84Dt

Full Press Release (FR):… pic.twitter.com/xDky2hrU4s

— The Blockchain Group (@_ALTBG) May 26, 2025

World Liberty Finance has announced that it has inked a deal with 50 institutional investors to buy $2.5 billion of Bitcoin. The agreement involves stock worth $1.5 billion and $1 billion of convertible notes. The move is part of the company’s strategy to make Bitcoin a core part of its treasury reserves. It follows Strategy’s move to go Bitcoin-heavy, a strategy that many other companies are now copying. All these point to the growing accumulation of Bitcoin in its current low volatility state in anticipation of an upcoming bull rally going in H2 of 2025.

#Trump official email re: $2.5b raised from 50 institutional investors to buy Bitcoin as a reserve asset for NASDAQ:DJT. pic.twitter.com/Kb7roI8TCU

— MartyParty (@martypartymusic) May 27, 2025

Upcoming US Data Likely to Keep Bitcoin Price Volatility Low Despite Adoption News

Despite this growing adoption, Bitcoin will likely remain subdued through the week. That’s due to the upcoming core CPI print on Friday, May 30. Due to the volatility that comes with such data, the odds are high that investors could take a risk-off approach, pushing money into safer assets such as gold. However, with Bitcoin increasingly showing price stability even during shock news, the odds are high that the price could remain relatively stable as the CPI print date approaches.

9/ ➮

✯ On May 30 we get the April PCE – the Fed’s favorite inflation print

✯ This report is arguably more important than CPI or payrolls now

✯ Powell has openly said PCE guides policy more than headline CPI

✯ This is your final catalyst before summer volatility takes… pic.twitter.com/eTyJZUuRTg

— Skynet Insights (@Skynet_insights) May 27, 2025

EU Agrees to Hasten Trade Deal Efforts – Good for Bitcoin

A key factor that could help boost Bitcoin is the fact that the EU has agreed to fast-track trade negotiations with the US. This comes after the US president threatened to impose a 50% tariff on EU goods starting June 1. Trump’s announcement saw the price of Bitcoin drop from over $110k to around $107k. However, with the EU’s move, the price has stabilized, and the news of rising adoption could give it a push higher.

Good call with @POTUS.

The EU and US share the world’s most consequential and close trade relationship.

Europe is ready to advance talks swiftly and decisively.

To reach a good deal, we would need the time until July 9.

— Ursula von der Leyen (@vonderleyen) May 25, 2025

Bitcoin’s upside momentum could also get a boost from expectations of at least two rate cuts this year. This is a big deal as it could help create the liquidity necessary for investors to push more into risky asset classes such as cryptocurrency, an asset class in which Bitcoin is leading the way in investor adoption. 

Technical Analysis – Bitcoin Price Trading At A Recent High as Volumes Drop

From the charts, Bitcoin is trending higher, albeit with low volumes. Currently, it is trading at the May 20 high of $109,244. Bitcoin could rally to prices above $120k in the short term if buying volumes increase.

It could clearly signal that Bitcoin bulls have taken control and put it on a parabolic trajectory, with $200k or more as a likely target. On the other hand, if bulls fail and bear volumes rise, then Bitcoin could drop back to $104,147, a price level that is now a critical support level.