#BTCBreaksATH: Bitcoin reaches its all-time high of $109,545 amid easing trade tensions and regulatory optimism
On May 21, 2025, Bitcoin (BTC) surged to an all-time high of $109,545, surpassing its previous peak of $109,114 recorded earlier this year. This achievement comes amid easing global trade tensions and regulatory developments supporting the cryptocurrency market.
Market dynamics and contributing factors
The recent surge in Bitcoin's price can be attributed to several key factors:
Easing trade tensions between the United States and China: A 90-day trade agreement was reached between the United States and China on May 12, temporarily reducing tariffs on imports, alleviating economic uncertainty and boosting investor confidence.
Regulatory progress: The market reacted positively to the U.S. Senate's progress on a bipartisan bill to regulate stablecoins, indicating a more organized approach to cryptocurrency regulation.
Institutional adoption: Growing institutional interest and investment in Bitcoin has provided additional momentum for its price rise.
Technical indicators and market sentiment
Technical analysis indicates strong bullish momentum:
Moving Averages: The 50-day Simple Moving Average (SMA) is approaching a crossover above the 200-day Simple Moving Average, a pattern known as the 'golden cross,' which often indicates an upward trend.
Relative Strength Index (RSI): The Relative Strength Index remains in overbought territory, reflecting strong buying pressure.
Analysts expect potential short-term targets at $116,000, with some anticipating Bitcoin's price peaking at $128,000. Long-term forecasts, considering the growth of global money supply (M2), suggest that Bitcoin's price could reach $132,000 by the end of the year.
Performance of the broader cryptocurrency market
Positive sentiment extends beyond Bitcoin:
Ethereum (ETH): Trading at $2,591.09, Ethereum has seen a 4.52% increase, maintaining its position as the second-largest cryptocurrency by market capitalization.
Total market capitalization: The total market capitalization of cryptocurrencies reached $3.36 trillion, with Bitcoin representing over 60% of this value.$BTC
Expectations
The convergence of easing geopolitical tensions, favorable regulatory developments, and strong technical indicators suggests a continued bullish trajectory for Bitcoin. Investors and analysts will closely monitor these factors as the market approaches the next psychological level of $110,000.
