According to BlockBeats, on May 12, Bitfinex Alpha released a report stating that Bitcoin has re-broken the $100,000 mark for the first time in over three months, showing new strong momentum after its price had fallen 32% from January's historical high. Driven by macro tailwinds—including easing trade tensions and a dovish shift in the Federal Reserve's tone—this breakthrough is consistent with a broader shift in risk appetite, with Bitcoin's performance outpacing the stock market.
Importantly, funds continue to flow into Bitcoin, as evidenced by the market capitalization reaching an all-time high and over $920 million flowing into ETFs over the past two weeks. On-chain data also shows a significant reduction in the number of Bitcoins held at a loss, with over 3 million BTC returning to profitability. Combined with rising spot trading volumes and institutional-led ETF inflows, Bitcoin is now on a structurally solid foundation. As long as macro conditions remain supportive, short-term dips are likely to be quickly absorbed, reinforcing the upward trend and positioning BTC for further new highs.
Meanwhile, the Federal Reserve maintained interest rates due to rising concerns over inflation and unemployment, highlighting the risk of stagflation. Fed Chair Powell emphasized the uncertainty of the economic outlook, noting that the Fed requires more data before deciding on further policy actions. Although markets expect rate cuts before July, the Fed remains cautious, prioritizing price stability over a rapid response to slowing growth.
In the field of cryptocurrency, new developments show that institutions and governments are increasingly interested in the crypto market, but political and regulatory obstacles still exist. New Hampshire has taken a bold step in financial innovation, becoming the first state in the United States to enact a law allowing investments in cryptocurrencies and precious metals. This initiative reflects the growing momentum of digital asset integration at the state level amidst the evolving national policy debate.
In the private sector, BlackRock deepened its regulatory engagement by meeting with the SEC to discuss introducing staking features for crypto ETFs and refining options trading rules. This meeting marks an important development in the regulation of crypto assets, with BlackRock advocating for the introduction of staking features in Ethereum-based ETFs and expanding product functionalities. This also reflects the SEC's increasingly proactive regulatory tone in shaping the digital asset space.
