Bitcoin hit a historic milestone this week, smashing past $109,000 for the first time, driven by surging investor interest, strong ETF inflows, and growing optimism around regulatory clarity. The world’s largest cryptocurrency jumped nearly 2% to $108,955.10, briefly touching an intraday high of $109,857 before a temporary dip due to rising Treasury yields and slipping equities. Despite this reversal, Bitcoin quickly rebounded, showcasing its resilience amid broader market turbulence.
After a quiet start to the year, Bitcoin has made a strong comeback in May, posting a 15% gain for the month. The rally has been powered by robust liquidity in equity markets, growing demand for alternative assets, and rising concerns over U.S. tariffs and fiscal deficits. Exchange-traded funds (ETFs) linked to Bitcoin have seen impressive momentum, with total inflows exceeding $40 billion and just two days of outflows in May. On-chain data indicates a decline in exchange inflows and record levels of Tether (USDT) on trading platforms—signals of reduced selling pressure and abundant liquidity.
Investors are also tracking regulatory progress closely. The U.S. Senate advanced key legislation to regulate stablecoins, a crucial development for the broader crypto ecosystem. Former President Donald Trump has pushed for a crypto regulation bill to be finalized by August. Meanwhile, institutional adoption continues to climb, with public companies now holding 15% of all Bitcoin—worth $349 billion—a 31% increase since the start of the year. This growing institutional stake and clearer regulatory outlook could propel Bitcoin even higher.
