In May 2025, the cryptocurrency market rose 10.3%, continuing the upward trend from April despite significant volatility driven by uncertainty in U.S. trade policies. Bitcoin and Ethereum short positions saw nearly US$1B in liquidations following the U.S.-UK trade agreement, with an additional US$183M liquidated after the U.S.-EU tariff pause. Meanwhile, corporate adoption strengthened, highlighted by TwentyOne Capital’s Bitcoin acquisition and Sharplink’s announcement of a new Ethereum treasury.
U.S. spot Bitcoin ETFs saw a strong May, attracting US$5.2B in net inflows – the highest since November 2024 – as Bitcoin reached a new all-time high (ATH) due to the support of stablecoin legislation in the U.S. Senate and Hong Kong's Legislative Council. However, late-month profit taking and renewed macro uncertainty triggered US$962M of outflows over two days, the largest since February. The volatility highlights ETFs' growing role in price discovery, with BlackRock's IBIT leading inflows while Grayscale's GBTC shed US$320M, signaling a potential 'winner-takes-all' dynamic.
Corporate BTC treasuries continue to expand sharply, reaching 809.1K BTC across 116 public companies in May. Bitcoin’s all-time highs (~US$112K) have renewed corporate FOMO as firms seek balance sheet upside and inflation hedges, supported by improving regulatory clarity and 2025 fair-value accounting changes. While BTC remains the core reserve asset, some firms are cautiously diversifying into ETH, SOL, and XRP. Looking ahead, the pace of treasury growth will depend on broader macro conditions, regulatory shifts, and market cycles.
May 2025's crypto market highlighted notable structural divergence and sector rotation. Decentralized Finance (DeFi) grew an impressive 19.0%, driven by new product launches, yield opportunities, capital rotation, and rising Total Value Locked (TVL), far outpacing Bitcoin's solid 11.1% gain as BTC reached a new ATH. In contrast, Gaming and Layer 2 (L2) remained weak, posting negative returns despite generally positive market sentiment.
The tokenized real-world asset (RWA) market has surged over 260% in the first half of 2025, reaching a total valuation of US$23B. Currently, tokenized private credit and U.S. Treasury debt dominates the space, accounting for 58% and 34% of the market, respectively. As regulatory frameworks become clearer, the sector is poised for continued growth and increased participation from major industry players.
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