May 23, 2025
By Our Correspondent
On Wednesday, Bitcoin surpassed its January record and reached a new all-time high.
According to Coin Metrics, the flagship cryptocurrency’s price was last up 2% at $108,955.10. It had previously increased to $109,857.
After stocks dropped to session lows and Treasury yields surged, bitcoin once again reversed its gains.
According to Antoni Trenchev, cofounder of cryptocurrency exchange Nexo, “a number of favorable ingredients in the macro cauldron, including softer U.S. inflation numbers, a de-escalation in the U.S.-China trade war, and the Moody’s downgrade of U.S. sovereign debt, have concocted Bitcoin’s new high.”
“Compared to early April, when global macro concerns peaked and bitcoin fell to $74,000, we’ve entered a very different universe,” he continued. “It’s possible that a three-month window has opened for risk assets to flourish while the U.S. and China work out a more comprehensive [trade] agreement.”
Bitcoin has been rising gradually in May, up 15% for the month, after stalling for a few weeks due to uncertainties over tariffs. According to SoSoValue, exchange-traded funds that monitor the price of bitcoin have seen cumulative inflows of almost $40 billion last week, with only two days of withdrawals recorded throughout May.
The cryptocurrency has profited from recent risk-off scenarios involving worries about tariffs and deficits in the United States, which have fueled advances in gold and alternative assets like bitcoin, as well as from stock market liquidity that has boosted risk assets.
As seen by bitcoin inflows into exchanges and new records for the quantity of Tether stablecoin USDT, a measure of crypto market liquidity, residing on exchanges, on-chain data also demonstrates less selling pressure, according to CryptoQuant.
Investors anticipated that corporate treasury investments and regulatory revisions would act as triggers to raise the price of bitcoin. According to Bitcoin Treasuries, the amount of bitcoin held by publicly traded firms has increased 31% since the start of the year, reaching around $349 billion. That comprises 15% of the total bitcoin supply.
Earlier this week, the Senate voted to advance legislation that would create the first regulatory framework in the U.S. for stablecoins, a key sector of the crypto market. President Donald Trump has said he wants to see crypto regulation on his desk and ready to sign by August before Congress goes into recess.
