On May 22, the cryptocurrency market witnessed a historic moment again—Bitcoin officially broke through the $110,000 mark, setting a new high at $110,022.32 per coin. This is not just an update of a number, but Bitcoin's total market value has first climbed to $2.18 trillion, making it the fifth largest asset in global market value, second only to gold, Microsoft, Nvidia, and Apple.
This is not a market driven by emotional fervor, but an inevitable result of the resonance of multiple structural variables. From the advancement of Washington's legislation to the implementation of policies in Asia, from continuous capital inflow to ongoing supply tightening, Bitcoin is embarking on a path of 'institutionalization, sovereignization, and compliance.'
1. Policy Resonance: The U.S. and Hong Kong are simultaneously advancing stablecoin legislation, bringing crypto assets 'into the mainstream.'
Behind the surge in Bitcoin prices, the policy logic is the core pivot.
🔹 U.S. (GENIUS Act) advances federal regulation of stablecoins.
On May 19, the U.S. Senate passed the (GENIUS Stablecoin Act) with a procedural vote of 66 to 32, establishing entry thresholds for the stablecoin market, which has a total market value close to $250 billion. The bill requires issuers to have full reserves, undergo regular audits, and prohibits algorithmic stablecoins from circulating freely.
Ding Zhaofei, chief analyst at HashKey, stated that if this bill is passed, it will release 'hundreds of billions' of incremental funds—future capital will bridge dollars and on-chain assets through compliant stablecoins, opening up the circulation channel between the crypto market and traditional finance.
🔹 Hong Kong takes the lead in passing the (Stablecoin Regulation Draft).
While the U.S. is advancing, the Hong Kong Legislative Council passed the (Stablecoin Regulation Draft) on May 21 with three readings, becoming the first international financial center to implement stablecoin details. Mlion.ai's policy sentiment tracking module indicates that the market reacted very positively to Hong Kong's move, with investors viewing it as a landmark event of 'Asian compliance dividend,' signaling that Hong Kong will become a testing ground for the integration of global Web3 funds, projects, and systems.
2. Capital inflow and supply tightening: it's not FOMO, it's capital structure repricing.
Another key to this round of rising is that capital is systematically returning to crypto assets, but this time it is led by institutions, not retail investors.
🔸 Spot ETFs continue to attract capital.
Since the approval of Bitcoin spot ETF in January 2024, it has attracted over $15 billion in capital inflow to date. Mlion.ai's on-chain heat tracking data show that in just one week in mid-May, the net inflow of ETF-related addresses exceeded $700 million.
🔸 Illiquid supply hits historic peak.
According to Glassnode data, nearly 70% of the circulating BTC is currently in an illiquid state, meaning that the holding addresses have not made any withdrawals. Supply tightening and rising demand are the fundamental reasons for the structural price increase.
3. Bitcoin 'decouples' and strengthens: from risk assets to value anchoring.
It is worth noting that this round of increase occurs against the backdrop of adjustments in U.S. stocks, fluctuations in the dollar, and surging U.S. Treasury yields.
In early April, after Trump initiated a new round of tariff wars, Bitcoin briefly fell below $75,000. However, in May, it 'decoupled' from U.S. stocks and strengthened alone, showing a clear rise in its value reserve attribute.
As JPMorgan said: 'The rise of gold comes at the expense of Bitcoin, and now, the rise of Bitcoin is at the expense of gold.' The market is making a choice—Bitcoin is gradually replacing gold, becoming the next generation of digital reserve assets.
Mlion.ai's asset class allocation recommendation module has raised the 'inflation hedging score' for BTC to 88 (out of 100), surpassing gold for the first time.
4. Clear bullish signals from the structure: target prices point to the $150,000 to $180,000 range.
Ding Zhaofei believes that Bitcoin is expected to hit the $150,000 to $180,000 range within the year, based on reasons including:
Volatility is rising, and the structure of bullish options is stable;
Macroeconomic capital flows and regulatory frameworks form a 'long-term support';
Supply continues to tighten, and FOMO has not yet fully launched.
Mlion.ai's quantile price prediction model has also raised its year-end target price to the $136,000 to $178,000 range, indicating that the main upward wave has not yet ended.
5. TRUMP Gala: A highlight of meme politics or a bubble signal?
Just as Bitcoin reached a new peak, another event that was highly 'entertained' and 'disconnected' from it also made headlines—Trump's 'TRUMP Gala Dinner.'
The event uses TRUMP tokens as the entry threshold, with the top 220 holders able to have dinner with Trump, and the top 25 getting VIP tour qualifications at the White House. Token holders are granted actual political contact rights, sparking strong controversy in the industry.
Critics argue:
‘This is no longer a decentralized experiment, but a dangerous experiment of assetizing and tokenizing political influence.’
This also exposes the potential issues of the current Meme coin culture combined with the power structure—when speculation surpasses technical vision, the moral boundaries of the crypto market will face challenges.
Sixth, the 'Bitcoin 2025 Conference' is about to open: deep binding of crypto and Washington.
From May 27 to 29, the 'Bitcoin 2025 Conference' will be held in Las Vegas, featuring an unprecedented lineup of guests:
U.S. Vice President Vance.
Trump's son Eric Trump.
Founder of Strategy, Michael Saylor.
Robinhood CEO Vlad Tenev.
This conference is expected to announce multiple cooperation directions related to ETFs, institutional strategies, and government legislation, making it a key window to observe the consensus path of policy + financial institutions. Mlion.ai will track the conference content in real-time and provide AI deep news analysis services on the platform to help investors quickly capture important signals.
Conclusion: Bitcoin breaking through $110,000 is not a peak of sentiment, but a milestone in structural evolution.
If the Bitcoin bull market of 2021 was built on stories and retail sentiment, the bull market in 2025 resembles a real transformation based on policy legitimacy, capital structure, and global institutional changes.
Compliance, scarcity, sovereign-level participation, value anchoring—this is Bitcoin's transformation from a 'speculative asset' to a 'reserve-level asset.' What you are facing is not just a question of how much it has risen, but the fact that the underlying structure of the global financial system is changing.
Disclaimer: The above content is for informational sharing only and does not constitute any investment advice!
