Bitcoin surged to an all-time high on Wednesday, surpassing its January record by 2%. The cryptocurrency’s price jumped to $108,955.10, driven by favorable macroeconomic factors such as lower US inflation numbers and a de-escalation in the US-China trade war.
Antoni Trenchev, cofounder of crypto exchange Nexo, attributed the surge to a broader shift in global economic sentiment. “We’ve entered an alternate universe where risk assets can thrive,” he said. “A three-month window has opened for alternative stores of value like bitcoin to flourish.”
Bitcoin’s steady climb in May, up 15% for the month, is largely due to increased liquidity and reduced selling pressure. On-chain data shows inflows into exchanges and increased Tether stablecoin USDT on exchanges, indicating a surge in crypto market liquidity.
Investors had been expecting catalysts such as regulatory updates and corporate treasury investments to drive prices higher. The growing number of bitcoin held by public companies, 31% since the beginning of the year, is also supporting the uptrend.
This month’s developments, including the Senate’s vote on stablecoin regulation and Coinbase’s joining the S&P 500, have been seen as significant milestones for the crypto industry.
Source: https://www.cnbc.com/2025/05/21/crypto-market-today.html