June 12, 2025
By Anjali Kochhar
In May, the global cryptocurrency market experienced a sharp increase in trading activity, driven by growing optimism around policy changes and powerful technical patterns across major digital assets. This rally, which came after weeks of relatively flat movement, was one of the most robust trading surges in recent months and reflected renewed confidence among investors and institutions.
Bitcoin reached new heights during the month, briefly touching an all-time high of $111,888. Its breakout past previous resistance levels triggered a large wave of short liquidations, which only further fueled upward momentum. Ethereum also gained significantly, supported by the successful Pectra upgrade that enhanced the network’s scalability and efficiency. These developments encouraged more activity from retail and institutional investors alike.
Daily crypto trading volumes spiked considerably. On May 22 alone, global volumes reached nearly $193 billion, an increase of about 55 percent compared to the previous month. This growth was not limited to Bitcoin and Ethereum. Altcoins such as Solana and Sui posted strong gains as well. Solana’s price climbed steadily as stablecoin activity on its network increased, while Sui jumped by over 50 percent due to rising adoption among developers and investors.
A major factor behind this surge was the improved global policy environment. The United States paused tariffs on several key trade partners, which brought some relief to financial markets and increased investor appetite for riskier assets, including cryptocurrencies. In addition, the Internal Revenue Service made changes to its DeFi reporting requirements, while banking regulators in the U.S. moved closer to allowing crypto custody services. These developments created a sense of clarity and reduced uncertainty around digital assets.
Positive macroeconomic news also played a role. Global inflation rates showed signs of stabilizing, and tensions between the U.S. and China eased slightly, further strengthening market sentiment. Together, these factors gave traders the confidence to re-enter the crypto markets in large numbers, leading to price rallies and higher volumes.
As May came to a close, analysts warned that while the upward movement was strong, markets were beginning to look overbought. Some cautioned that any negative news on the policy front or unexpected macroeconomic shocks could trigger a correction. Even so, the enthusiasm in May signaled a clear message: crypto remains a dynamic and reactive market, where regulation, sentiment, and innovation together shape the pace of growth.
About the author
Anjali Kochhar covers cryptocurrency stories in India as well as globally. Having been in the field of media and journalism for over eight years now, she has developed a sharp news sense and works hard to present information that goes beyond the obvious. She is an avid reader and loves writing on a wide range of subjects.
