Bitcoin has once again shattered expectations, climbing past the $110,000 milestone. This remarkable achievement is driven by a powerful combination of structural factors: progress in U.S. stablecoin legislation, sustained institutional investment, unprecedented supply constraints, and an improving macroeconomic landscape.
On May 22, Bitcoin’s price soared to over $110,000, reaching $110,022.32 per coin with a daily increase of 3.03%. This surge propelled Bitcoin’s total market capitalization to $2.184 trillion, securing its position as the fifth most valuable asset globally, trailing only gold, Microsoft, NVIDIA, and Apple.
Alongside Bitcoin’s rally, other major cryptocurrencies like Ethereum and Solana also posted gains exceeding 2%.
According to Jeffery Ding, Chief Analyst at HashKey Group, Bitcoin’s robust performance is underpinned by fundamental factors including advancements in U.S. stablecoin regulation, continuous institutional inflows, and a more favorable macroeconomic climate. These elements suggest that Bitcoin is on a more sustainable and mature trajectory toward new all-time highs.
Understanding the Recent Market Cycle
Bitcoin’s recent bullish momentum began in November 2024, following the U.S. presidential election. The price climbed steadily, surpassing $109,000 in January 2025. However, the market faced a significant test in early April amid global trade tensions, with Bitcoin’s price briefly dipping below $75,000 on April 9.
Demonstrating remarkable resilience, Bitcoin’s price subsequently recovered, decoupling from the U.S. stock market’s performance and rallying independently. So far in May, Bitcoin has gained nearly 16%, bringing its year-to-date increase to approximately 17%.
Bitcoin Versus Gold: A Shifting Dynamic
J.P. Morgan analysts suggest that Bitcoin could outperform gold in the second half of the year, fueled by corporate demand and supportive U.S. government policies.
The bank noted a shifting dynamic: "From mid-February to mid-April, gold's rally came at the expense of Bitcoin. Over the past three weeks, we have observed the opposite—Bitcoin's gains have come at the expense of gold." They anticipate this zero-sum game between the two assets to continue but express a preference for Bitcoin, expecting crypto-specific catalysts to provide stronger upward momentum in the coming months.
Core Factors Driving the Rally to $110K
The breakthrough past $110,000 is not a random event but the result of several converging structural forces.
Legislative Progress: The GENIUS Stablecoin Act
A major catalyst was the U.S. Senate's procedural vote on May 19, which passed the GENIUS Stablecoin Act with a 66-32 majority. This landmark legislation aims to regulate the nearly $250 billion stablecoin market. It mandates that issuers maintain full reserves, undergo regular security audits, and bans the unregulated circulation of algorithmic stablecoins.
If enacted as federal law, this would be the first comprehensive stablecoin framework in the U.S., profoundly impacting the global crypto market. It would reshape the compliance landscape, potentially allowing established players to solidify their market positions.
Ding emphasized that the bill's passage through the Senate is highly anticipated. This would open a significant new channel for capital inflow, potentially directing hundreds of billions of dollars into the digital asset space via regulated stablecoins. In a related development, the Chair of the U.S. Securities and Exchange Commission (SEC) has reportedly instructed staff to begin drafting proposals for cryptocurrency-related rules.
Notably, Hong Kong moved swiftly ahead of the U.S., formally passing its own Stablecoin Ordinance Bill on May 21, 2025, establishing a clear regulatory framework for issuers.
Sustained Institutional Demand and Supply Squeeze
On the demand side, continued inflows from both institutions and retail investors are providing strong support.
Ding pointed to Glassnode data showing Bitcoin’s non-liquid supply has hit a record high. This indicates the current rally is not driven by retail speculation but by deeper structural forces: sustained institutional accumulation, a historic supply squeeze, and macroeconomic improvements.
Spot Bitcoin ETFs continue to see consistent capital inflows, underscoring strong foundational demand. Even amid events that typically trigger risk-off sentiment in equities, Bitcoin has advanced, strengthening its narrative as a reliable store of value. This consensus is growing and is likely to serve as a long-term positive catalyst.
Price Outlook and Market Sentiment
Regarding Bitcoin’s price target for the year, Ding projects a range of $150,000 to $180,000. The broader narrative for the crypto market is gaining strength, and volatility metrics reflect sustained optimism. Despite periods of price consolidation and macro uncertainty, implied volatility for crypto assets remains relatively high. The stable skew structure for Bitcoin call options across most maturities suggests the market maintains a structurally bullish outlook.
For those looking to dive deeper into market analysis and trends, you can explore real-time data and advanced charts.
Controversy Surrounding the "TRUMPGala" Event
As Bitcoin set new records, a different kind of crypto story unfolded. Former President Donald Trump scheduled a "TRUMPGala" dinner for May 22 at the Trump National Golf Club in Washington. The event granted access to the top 220 holders of a specific "TRUMP" token, with the top 25 holders offered a VIP tour of the White House. A limited-edition NFT was promised as a substitute if Trump could not attend.
This event sparked significant concern within and outside the industry. Many critics argued it created a pay-to-play model for political access, raising serious questions about potential conflicts of interest.
Industry professionals criticized the design, stating, "This model of 'holdings as privilege' directly converts political influence into scarcity premium for a digital asset. It exposes how the crypto market is being transformed from a field of technological innovation into a speculative tool for power symbols."
Ding commented, "The rise of the TRUMP token signifies the formal entry of Meme coin culture—cryptocurrencies without asset backing—into the core circle of political power. This communication model, born from internet subculture, is reshaping the narrative logic of traditional politics. This cultural paradigm shift poses a severe challenge to the cryptocurrency industry. As political figures systematically begin to harness Meme coins to capture attention, the technological idealism of the industry is being replaced by pragmatic utilitarianism."
Upcoming Industry Event: Bitcoin 2025
Shifting focus back to technology and adoption, the world's most influential cryptocurrency conference, "Bitcoin 2025," is set to take place from May 27 to 29 in Las Vegas. The event will feature a notable lineup of speakers, including U.S. Vice President Vance, Eric Trump, Michael Saylor (Founder of MicroStrategy, the world's largest corporate Bitcoin holder), and Vlad Tenev, CEO of commission-free trading platform Robinhood.
Frequently Asked Questions
What primarily caused Bitcoin to surge past $110,000?
The surge was driven by a confluence of factors including positive regulatory developments for stablecoins in the U.S., continuous buying from institutional investors through ETFs, and a historically tight supply of Bitcoin available for sale. An improving macroeconomic outlook also contributed to the bullish sentiment.
How does the new U.S. stablecoin bill affect Bitcoin?
The GENIUS Stablecoin Act aims to create a regulated framework for stablecoins. This legitimacy is expected to bring significant new capital into the entire digital asset ecosystem, including Bitcoin, as stablecoins often serve as a primary on-ramp for investors entering the crypto market.
Is Bitcoin's price expected to go higher?
Many analysts remain bullish based on current supply and demand dynamics. Some projections, considering ongoing institutional adoption and the reduced rate of new Bitcoin supply from mining, suggest targets could reach between $150,000 and $180,000 within the current market cycle.
What is the significance of Bitcoin's non-liquid supply hitting a record?
A record non-liquid supply means a historically high amount of Bitcoin is being held in long-term storage wallets and is not being sold on exchanges. This creates a supply squeeze, where available Bitcoin is scarce relative to demand, which typically puts upward pressure on the price.
What are the risks of politically-linked Meme coins like TRUMP?
These assets are highly speculative and often lack fundamental value. They are susceptible to extreme volatility based on political sentiment and events. Furthermore, they raise ethical concerns and regulatory risks, as seen with the criticism of the TRUMPGala event, which could lead to increased regulatory scrutiny for the entire crypto sector.
Where can I learn more about tracking cryptocurrency trends?
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