Bitcoin hits a new all-time high due to a combination of multiple structural forces, including progress in US stablecoin legislation, institutional capital inflows, historic supply tightening, and improvements in the macroeconomic environment.
On May 22, Bitcoin's price rose above $110,000, and as of the time of writing, it was reported at $110,022.32 per coin, a daily increase of 3.03%, setting a new historical high.
Image source: Coinbase
As of now, Bitcoin's total market value has reached $2.184 trillion, ranking fifth in the global asset market value list, only behind gold, Microsoft, Nvidia, and Apple.
As Bitcoin's price hits a new high, cryptocurrencies like Ethereum and Solana have also risen over 2%.
Ding Zhaofei, chief analyst at HashKey Group, told (Finance) that Bitcoin's significant strength is mainly attributed to the progress in US stablecoin legislation, continuous inflow of institutional capital, and improvements in the macroeconomic environment, among other fundamental supports. These factors indicate that Bitcoin will follow a more durable and mature path towards new historical highs.
Looking back at this round of Bitcoin's rise and fall, it should be traced back to November 2024 when Trump was elected as US president, at which time Bitcoin's price rose continuously, even sprinting to above $109,000 in January 2025. However, after Trump initiated a tariff war in early April, the cryptocurrency market could not remain unaffected, and on April 9, the price once fell below $75,000. Subsequently, Bitcoin's price continued to recover, showing a decoupling situation from the US stock market, rising independently. Since May, Bitcoin's price has increased nearly 16% in the month, while Bitcoin's year-to-date increase is about 17%.
JPMorgan believes that driven by corporate demand and support from the US government, Bitcoin may outperform gold in the second half of this year.
"From mid-February to mid-April, the rise in gold was at the expense of Bitcoin, while in the past three weeks we have observed the opposite situation, where Bitcoin's rise is at the expense of gold," JPMorgan believed. "Overall, we expect the zero-sum game between gold and Bitcoin to continue for the rest of this year, but we are more inclined to believe that factors driven by the crypto industry itself will bring more upward momentum to Bitcoin in the second half of the year."
Why did it break $110,000?
Regarding the reasons for the rise in Bitcoin prices, Ding Zhaofei believes it is the result of multiple structural forces working together, including stablecoin legislation at the policy level, continuous inflows of institutional capital, and improvements in the macroeconomic environment.
On May 19 local time, the US Senate officially passed the procedural vote for the (GENIUS Stablecoin Act) with a vote of 66 to 32. The bill aims to regulate the current stablecoin market, which is nearly $250 billion in market capitalization, requiring issuing institutions to meet strict conditions such as full reserves, regular security audits, and prohibiting unregulated circulation of algorithmic stablecoins.
If the legislation passes, (the GENIUS Stablecoin Act) will become the first federal legislation on stablecoins in the United States, having a profound impact on the global crypto market. The compliance costs for virtual assets may reshape the market landscape, allowing leading institutions to consolidate their positions.
Ding Zhaofei stated that the (GENIUS Stablecoin Act) has passed the procedural motion in the Senate, and now the bill will enter the full Senate voting stage, where its passage is inevitable. This will bring new funding channels to the digital currency market, with hundreds of billions of new funds expected to flow into the digital currency market through stablecoins. The chairman of the US Securities and Exchange Commission (SEC) has instructed policy department staff to start drafting rule proposals related to cryptocurrencies.
It is worth noting that after the US Senate accelerated the legislative process of the (GENIUS Stablecoin Act), Hong Kong's stablecoin regulatory bill is ahead of the US in passing.
On May 21, 2025, the Hong Kong Legislative Council officially passed the (Stablecoin Regulation Bill), establishing a clear regulatory framework for stablecoin issuance.
Furthermore, in the buyer's market for Bitcoin, there continues to be an inflow of funds from institutions and retail investors.
Ding Zhaofei mentioned that Glassnode data shows that the non-liquid supply of Bitcoin has reached a historical peak, indicating that the current rise of Bitcoin is not driven by retail frenzy, but by multiple structural forces, including institutional capital inflows, historic supply tightening, and improvements in the macroeconomic environment. In addition, spot Bitcoin ETFs continue to attract capital inflows, showing strong fundamental support. Even in the context of Moody's downgrading the US credit rating and a risk-averse sentiment in the stock market, Bitcoin has still managed to rise recently, further reinforcing its positioning as a store of value. This narrative is gaining more consensus and is expected to become a long-term positive catalyst.
Regarding Bitcoin's price target for this year, Ding Zhaofei believes it will reach $150,000 to $180,000. "The narrative of the entire crypto market is also heating up. The volatility market reflects the market's optimistic sentiment. Although spot prices are in consolidation and macro uncertainties remain, the implied volatility of crypto assets remains relatively high. The skew structure of Bitcoin call options remains stable across most maturities, suggesting that the overall market still maintains a structurally bullish expectation."
TRUMP coin dinner sparks controversy
Just as Bitcoin refreshes its historical high, Trump will host the "TRUMP Gala Dinner" at the Trump National Golf Club in Washington on May 22 local time. This event is set up so that the top 220 investors by holding amount can qualify for dinner with Trump, and the top 25 can participate in a VIP tour of the White House. If Trump is absent, limited edition NFTs will be issued as a substitute.
This event has raised concerns, with many industry insiders believing that this move provides direct opportunities for the president to benefit from transactions and has sparked criticism regarding potential conflicts of interest.
"This design of privileged holdings directly converts political influence into the scarcity premium of digital assets, exposing the cryptocurrency market's transformation from a field of technological innovation to a speculative tool of power symbols," industry insiders criticized.
"The rise of TRUMP tokens marks the formal entry of Meme (meme coins, cryptocurrencies without asset backing) culture into the core circle of political power. This dissemination model born from internet subculture is reshaping the narrative logic of traditional politics, and this cultural paradigm shift poses severe challenges to the cryptocurrency industry. When political figures begin to systematically use Meme coins to harvest attention, the technological idealism of the industry is being replaced by pragmatic realism," Ding Zhaofei stated.
Moreover, the world's most influential cryptocurrency conference - the "Bitcoin 2025 Conference" will be held from May 27 to 29 in Las Vegas, with guests including US Vice President Vance, Trump's son Eric Trump, the founder of Strategy, the publicly traded company with the largest Bitcoin holdings Michael Saylor, and Robinhood CEO Vlad Tenev.
