Bitcoin's surge above $100,000 has boosted optimism regarding the likelihood of a new all-time high (ATH) being reached soon.

Analysis based on on-chain data, accumulation patterns, and market sentiment points to several compelling reasons supporting the potential for Bitcoin to achieve a new peak. Here are five key factors driving Bitcoin towards a new ATH in May:

The first factor is the increase in whale accumulation throughout May. Data from Glassnode reveals that wallets of all sizes are actively accumulating BTC, as shown by the "Trend Accumulation Score by Cohort" chart. In May, accumulation expanded from large whale wallets to smaller ones, with wallets holding between 100 and 1,000 BTC also showing increased accumulation.

Moreover, Santiment reports that whale wallets have accumulated 83,105 BTC in the past month, helping push Bitcoin's Spot Volume Delta into positive territory, thereby propelling its price upwards.

The second reason is the record high illiquid supply of Bitcoin, reaching 14 million BTC worth over $1.4 billion. This surge in illiquid supply indicates that long-term investors are holding onto their BTC tightly, reducing circulating supply and facilitating potential price spikes as demand grows.

The third reason stems from small investors, with CryptoQuant noting a rebound in retail trading volume on Binance. While retail volume has not surged significantly, positive indicators suggest potential growth in retail participation in the crypto market.

The fourth factor that analysts are monitoring closely is the correlation between Bitcoin's price and the global M2 money supply. Research by crypto expert Colin Talks Crypto reveals a notable correlation between the growth in M2 money supply and Bitcoin's price movement, forecasting a potential rise to $120,000 by the end of May.

Finally, the prediction market at Polymarket has seen a significant increase in the probability of Bitcoin reaching a new ATH in May, currently standing at 51%. Growing optimism surrounding Bitcoin's future performance could fuel the FOMO effect, attracting more investors and driving prices higher.

Notably, Bitcoin has already achieved new ATHs in countries facing currency depreciation like Turkey and Argentina. Forecasts by experts like Tim Draper and financial institutions like Standard Chartered also suggest bullish outcomes for Bitcoin's price trajectory in the foreseeable future.