Bitcoin hit $110,788.98 on May 21, up 47% from April low of $75K.
Daily trading volume jumps 77% to $90.92B amid investor activity.
Fear & Greed Index at 72 signals strong market optimism, led by institutions.
Bitcoin's price exceeded $110,000 for the first time as it continues its consistent upward trajectory which demonstrates growing institutional investment in digital assets. Bitcoin's value climbed to $110,788.98 on Coinbase on May 21 surpassing its prior highest price point achieved earlier in the day. According to TradingView data Bitcoin grew over 3% during the last day while maintaining the upward trend it started recovering in April.
Institutional Confidence Powers Bitcoin’s Climb Amid Market Shifts
The biggest cryptocurrency in the world has risen 47% since dropping to $75,000 on April 7. That drop was prompted by worldwide market fluctuations due to wide-ranging tariffs enacted by the US President.
Nonetheless, Bitcoin has since surged significantly, achieving a 17.5% increase for the year. The increase corresponds with wider macroeconomic trends, such as instability in US bond markets. On May 21, a poor 20-year bond auction raised treasury yields, leading to a significant drop in US stock indexes.
Caroline Bowler, CEO of BTC Markets, states that the present increase in Bitcoin’s price is not fueled by retail speculation. Rather, it represents a more developed group of investors prioritizing long-term investments. She highlighted that high-quality infrastructure and enhanced regulatory clarity are crucial factors influencing the recent market trends. The consistent interest from major investors makes this rally distinct from earlier cycles.
Onchain Trading Volumes and Leverage Set Records
The Crypto Fear and Greed Index showed a score of 72 on May 22 which demonstrated a dominant sentiment of greed in the market. The index shows positive investor sentiment even though it has experienced a small decrease from its January peak of 84. At the same time, Google Trends data indicates that public interest is low, suggesting that institutional buyers are taking the lead.
With Bitcoin hitting its most recent high, trading volumes saw a notable increase. The daily volume surged by 77%, reaching $90.92 billion across various markets. This rise underscores the revived activity in Bitcoin trading as investors aim to benefit from price fluctuations. The increase in trading activity occurs alongside growing interest in Bitcoin-related financial products and cross-chain applications.
High-Stakes Bets Reflect Bullish Institutional Outlook
In another development, one of the biggest onchain leveraged trades also surfaced amid the rally. A trader by the name of James Wynn entered a 40x leveraged long position valued at $1.1 billion on the Hyperliquidity platform. The starting point was $108,065, and the trade reached an unrealized profit of $20 million at its highest.
This role faces liquidation if Bitcoin falls to $103,800, highlighting the dangers and benefits linked to margin trading in times of high volatility.
Edward Carroll, the leader of global markets at MHC Digital Group, proposed that institutional demand might continue to elevate prices in the medium term. His analysis suggests that Bitcoin might hit a minimum of $160,000 by the year's fourth quarter, backed by ongoing capital inflows and positive macroeconomic factors. His estimate matches a broader vision that anticipates Bitcoin could reach $1 million by 2030.
