Bitcoin breaks $110,000, setting a new historical high! Institutional wave and regulatory thaw drive the bull market continuation
On May 23, 2025, Bitcoin prices continued to soar, following yesterday's breakthrough of the $110,000 threshold, reaching a peak of $110,852 on the Coinbase platform today, with a total market capitalization of $2.165 trillion, surpassing Amazon to become the fifth largest asset globally, marking its complete transformation from a 'marginal asset' to a mainstream value storage tool.
Driving Factors Analysis
1. Institutional fund tsunami: The total amount of Bitcoin held by listed companies has accounted for 15% of the circulating supply (approximately $349 billion). Traditional institutions such as JPMorgan and Cantor Fitzgerald have launched special funds, emulating MicroStrategy's strategy of 'hoarding coins to improve balance sheets.'
2. ETF liquidity siphon: Bitcoin spot ETFs saw over $40 billion in fund inflows in a single week, with products from giants like BlackRock and Fidelity dominating, and institutional funds accounting for over 60% of Bitcoin holdings.
3. Regulatory thaw: The U.S. 'GENIUS Stablecoin Act' passed procedural voting, paving the way for traditional capital entry. The 'strategic Bitcoin reserve' plan promoted by the Trump administration further strengthens its compliant status.
Market Predictions and Risk Warnings
Bullish targets diverging: Trader Titan of Crypto predicts a short-term target of $135,000 based on Fibonacci extension tools, while technical analyst Gert van Lagen believes that after the breakout of the megaphone pattern, Bitcoin may surge to $300,000 to $320,000.
Leverage risk heating up: Alphractal CEO João Wedson warns that the current price is approaching a high leverage area, and liquidation risks could trigger severe short-term volatility, necessitating caution against long and short 'traps.'
Macroeconomic and Geopolitical Impacts
The China-U.S. trade negotiations have released signals of easing, compounded by a 9% decline in the dollar index this year, with Bitcoin's correlation to gold rising to 0.62, further highlighting its 'digital gold' attributes. Additionally, the crypto regulatory cooperation between the UK and the US, along with New Hampshire incorporating Bitcoin into its financial reserves, supports long-term demand.
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