Bitcoin (BTC) reached a new all-time high on Thursday, May 22, surpassing its previous record set in January and capturing significant market attention. Despite a brief pullback due to rising U.S. Treasury yields and broader stock market declines, Bitcoin’s overall momentum remained strong. According to data from CoinMarketCap, Bitcoin surged to an intraday high of $111,861 and was trading at $110,869 as of 3:00 p.m. on Thursday, reflecting a daily gain of approximately 3.3%.
Key Drivers Behind Bitcoin’s May Rally
This recent surge is attributed to a combination of institutional support and favorable macroeconomic conditions. Antoni Trenchev, co-founder of crypto trading platform Nexo, highlighted multiple tailwinds driving the rally, including cooling U.S. inflation, easing U.S.-China trade tensions, and Moody’s downgrade of the U.S. sovereign credit rating.
He noted, “It feels like we’ve entered a ‘parallel universe’ compared to early April. Back then, global macro risks peaked, and Bitcoin plunged to $74,000. Now, with a U.S.-China trade deal on the horizon, risk assets could enjoy a three-month window of favorable momentum.”
While Bitcoin faced pressure in April due to heightened tariff tensions, it has rebounded strongly in May, posting gains of over 18% for the month. Data from SoSoValue indicates that Bitcoin-focused exchange-traded funds (ETFs) have seen net inflows exceeding $40 billion as of last week, with only two days of outflows in May.
Institutional Accumulation: A Deeper Catalyst
Beyond macroeconomic factors, sustained institutional investment has played a critical role in Bitcoin’s rally. Min Jung, an analyst at Presto Research, emphasized that strategic accumulation by companies like MicroStrategy, Metaplanet, and Twenty One Capital indicates this bull cycle is being driven more by institutions and long-term capital than retail speculation.
Roshan Robert, CEO of OKX U.S., echoed this sentiment, citing corporate treasury strategies, surging ETF inflows, macroeconomic uncertainty, and supportive regulatory developments as key contributors to Bitcoin’s rise.
Regulatory progress has also bolstered market confidence. The U.S. Senate recently advanced the GENIUS Act, which aims to establish the first regulatory framework for stablecoins—a cornerstone of the crypto market. Additionally, former President Trump has expressed intentions to sign crypto legislation into law before Congress recesses in August. The inclusion of Coinbase in the S&P 500 index earlier this month further signals growing mainstream acceptance of cryptocurrencies.
Bullish Price Predictions from Major Institutions
Despite periodic pullbacks, bullish sentiment remains strong across the industry. With Bitcoin breaking above $110,000, price targets of $200,000 or higher have regained traction.
Blockstream CEO Adam Back: $500,000 to $1 Million
Adam Back recently stated that Bitcoin remains undervalued given substantial institutional inflows and the post-halving cycle. He suggested that once new all-time highs are established, Bitcoin could accelerate rapidly toward the $500,000 to $1 million range.
Bernstein: $200,000 Target
Wall Street investment firm Bernstein projects that enterprises will acquire up to $330 billion worth of Bitcoin over the next five years. Analysts previously noted that “the genie is out of the bottle,” emphasizing the irreversible nature of Bitcoin’s upward trend.
JPMorgan’s Shift in Stance
JPMorgan CEO Jamie Dimon, a long-time Bitcoin skeptic, acknowledged the bank’s plans to allow clients to purchase Bitcoin despite ongoing concerns about illicit activities. This shift highlights the growing convergence between traditional finance and the crypto market. Since August last year, Morgan Stanley has also permitted its financial advisors to recommend spot Bitcoin ETFs to qualified clients.
Technical Indicators: Strong Momentum with Caution Advised
From a technical perspective, Bitcoin’s Relative Strength Index (RSI) and Stochastic Oscillator are in overbought territory, indicating robust bullish momentum. However, this overbought condition suggests heightened risk of a pullback. The 50-day Simple Moving Average (SMA) is nearing a crossover above the 200-day SMA, which could form a “golden cross” on the daily chart—a strong buy signal if confirmed.
Should Bitcoin close below $105,000, however, a deeper correction toward the key psychological support level of $100,000 may occur.
Conclusion: Bitcoin’s Resilient and Disruptive Trajectory
Bitcoin’s journey from its inception in 2009 to its current record-breaking highs underscores its resilience and transformative impact on the global financial system. Projections for 2025–2030 emphasize its potential for further expansion, solidifying its role as a revolutionary force in finance. While challenges remain, Bitcoin’s future appears increasingly promising.
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Frequently Asked Questions
What caused Bitcoin’s recent surge to $110,000?
Bitcoin’s rally was driven by institutional accumulation, macroeconomic tailwinds like cooling inflation, and regulatory advancements such as the progress of the GENIUS Act. Increased ETF inflows also contributed significantly.
How are institutions influencing Bitcoin’s price?
Companies like MicroStrategy and Metaplanet are strategically accumulating Bitcoin, while traditional financial firms like JPMorgan and Morgan Stanley are increasingly offering crypto-related services to clients, driving demand and legitimacy.
What are the key technical levels to watch?
Traders should monitor the $105,000 support level. A break below could lead to a test of $100,000. Conversely, a confirmed “golden cross” between the 50-day and 200-day SMAs may signal further upward momentum.
Is Bitcoin overbought at current levels?
Yes, technical indicators like RSI suggest Bitcoin is overbought, which could lead to short-term pullbacks. Long-term fundamentals, however, remain strong.
What is the long-term outlook for Bitcoin?
Analysts from firms like Bernstein and Blockstream project targets ranging from $200,000 to over $1 million in the coming years, driven by institutional adoption and regulatory clarity.
How does regulatory news affect Bitcoin’s price?
Positive regulatory developments, such as the potential passage of pro-crypto legislation, tend to boost market confidence and drive investment, while uncertainty or negative news can cause volatility.