Bitcoin has just achieved a historic milestone by surpassing $110,000 for the first time. Delve into the intricacies of this rapid ascent and explore the future prospects of a booming crypto market.
Bitcoin has crossed the $111,000 mark for the first time, hitting a new all-time high (ATH) at $111,627 on Binance this morning. This surge, marked by a 3% increase in 24 hours, allowed BTC to surpass its previous record of $109,458 set earlier in the day, also erasing the historic peak on January 20.
Bitcoin has shown an impressive performance with a 17.5% increase since the beginning of the year and a spectacular rebound of 47% from its low at $75,000 on April 7, triggered by the massive tariff announcements by the Trump administration, which shook global markets.
This resilience of Bitcoin contrasts with the volatility of traditional markets, marked by a massive sell-off during a weak auction of 20-year US Treasury bonds on May 21, driving Treasury bond yields higher.
American stock indices, such as the S&P 500 (-80 points in 30 minutes), the Nasdaq, and the Dow Jones, all closed lower on that day.
Caroline Bowler, CEO of the Australian exchange BTC Markets, told Cointelegraph:
“This new ATH reflects a growing maturity in the cryptocurrency market. Unlike previous cycles marked by rampant speculation, the current demand is supported by robust institutional infrastructure and increased regulatory clarity. Investors are now adopting allocation strategies akin to traditional financial institutions.”
This rise of Bitcoin coincides with increased adoption by institutions. According to Glassnode, wallets holding over 1,000 BTC have increased by 8% since the beginning of the year, signaling significant interest from high net worth individuals and investment funds.
Furthermore, Bitcoin spot ETFs, approved in the US in 2024, recorded net inflows of $2.3 billion over the past 30 days, according to Bloomberg.
Interestingly, retail investor enthusiasm remains moderate. According to Google Trends, searches for “Bitcoin” have been declining since November 2024, reaching levels comparable to bear markets. This suggests that the current rally is primarily being driven by institutional players rather than retail speculative frenzy.
However, the Crypto Fear & Greed Index, which gauges market sentiment, shows a score of 72/100 on May 22, indicating a “greed” phase. This score is lower than its peak of 84 reached on January 22, just after Donald Trump’s inauguration, but still indicative of persistent optimism.
Edward Carroll, Head of Global Markets at MHC Digital Group, shares a cautiously optimistic view:
“Growing demand and institutional adoption could drive Bitcoin to $160,000 by the fourth quarter of 2025. In the longer term, a target of $1 million by 2030 is not unrealistic, given the macroeconomic dynamics and the erosion of trust in fiat currencies.”
This forecast is based on several factors:
From a technical standpoint, Bitcoin seems poised to continue its ascent. Historically, the weekly Woodies CCI is a compelling signal for anticipating trend reversals. Despite the bearish divergence of the RSI, the Woodies CCI remains in positive territory, giving bulls the upper hand.
Bitcoin is expected to push beyond $120,000 in the coming days.
Despite the euphoria, risks remain. The correlation between Bitcoin and traditional markets, while diminished, could expose the cryptocurrency to corrections if stock indices continue to waver. Moreover, regulatory uncertainties, particularly in Europe and Asia, could dampen the momentum.
Yet, analysts remain optimistic. According to CoinGecko, Bitcoin’s daily exchange volume hit $85 billion on May 21, a record level since December 2024, signaling robust liquidity. Additionally, BitInfoCharts reports a 12% increase in daily active addresses on the Bitcoin network, indicating growing adoption.
The crossing of the $111,000 mark by Bitcoin represents a significant step in its adoption and recognition as a legitimate financial asset.
Fueled by institutional investments and increasingly robust infrastructure, BTC appears ready to continue its upward trajectory, despite still-muted retail interest. The coming months will be crucial in confirming whether Bitcoin can sustain this momentum and reach the ambitious levels predicted by experts.
Charles Ledoux is a Bitcoin and blockchain technology specialist. A graduate of the Crypto Academy, he has been a Bitcoin miner for over a year. He has written numerous masterclasses to educate newcomers to the industry and has authored over 2,000 articles on cryptocurrency. Now, he aims to share his passion for crypto through his articles for InvestX.
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