Bitcoin ($BTC) has once again shattered expectations, reaching a new all-time high after four months of relative quiet.
On 21 May, the world’s largest cryptocurrency climbed to an unprecedented $111,861.22, exceeding all previous records and breaking through key psychological thresholds.
Earlier in the day, Bitcoin had already surpassed its previous peak of $109,241 — a figure set on 20 January, just before pro-crypto President Donald Trump was inaugurated.
Trading activity intensified throughout 21 May, pushing the price to $110,788.98 on Coinbase around 11:30 pm UTC, according to data from TradingView.
The rally represents a 3% daily gain, extending a broader bullish trend that has seen Bitcoin rise 17.5% since the beginning of the year and 47% since its 7 April dip to $75,000.
That slump was triggered by a wave of market uncertainty following President Trump’s imposition of sweeping tariffs, which rippled across global financial markets.
Despite these setbacks, Bitcoin’s recovery has been swift and decisive. Its market capitalisation now sits at $2.2 trillion, placing it ahead of tech giants Amazon and Alphabet.
If treated as a publicly traded company, Bitcoin would rank as the fourth-most valuable in the world — trailing only Microsoft, Nvidia, and Apple.
“This reflects a mature interest in digital assets worldwide, not the speculative surge seen in past cycles”, the CEO of Australian exchange BTC Markets, Caroline Bowler.
She attributed the demand to “institutional-grade infrastructure and stronger regulatory clarity,” noting that investor sentiment now mirrors the approach of traditional financial institutions.
Yet, despite its performance, retail interest appears muted. According to Google Trends, searches for Bitcoin have dropped to levels typically seen during bear markets.
The Crypto Fear & Greed Index echoed this sentiment, reading 72 out of 100 on 22 May — signalling “greed”, but down from January’s high of 84.
On X, prominent Bitcoin advocates celebrated the moment. MicroStrategy’s executive chairman, Michael Saylor, posted that those not buying at current prices are “leaving money on the table”.
Many long-term holders expressed vindication, citing the all-time high as a reward for staying committed through difficult market conditions.
Adding symbolic weight to the timing, 22 May also marks Bitcoin Pizza Day — the anniversary of the first recorded Bitcoin transaction when two pizzas were purchased for 10,000 BTC in 2010.
At the time, the value was approximately $40. Today, those same coins would be worth over $1.1 billion.
Institutional demand and miner struggles
Bitcoin’s rise has not been entirely smooth. Underneath the price surge lies a more complex story of financial pressure, particularly among miners. Data shows that in April, miners sold 115% of their monthly output, dipping into reserves in response to tighter profit margins.
This activity is partly due to the 2024 halving event, which cut mining rewards, alongside higher operational costs such as energy prices.
Though Bitcoin remains close to record highs, many mining operations are under stress. To stay afloat, firms have sold off more coins than they’ve mined, increasing market supply and briefly pushing up trading volumes.
The result has been short-term volatility, with some traders interpreting the sell-off as bearish. Others, particularly institutions, saw it as a buying opportunity.
Despite these challenges, miners are adapting. Many are upgrading their infrastructure, shifting to more efficient hardware, and seeking out lower-cost or renewable energy sources. Some are even diversifying their business models — including offering AI computing services — to maintain revenue streams.
Still, older operations or those located in expensive regions are being forced to liquidate more frequently. That ongoing pressure adds complexity to the market outlook.
At the same time, institutional interest in Bitcoin appears undeterred. According to data from SoSoValue, spot Bitcoin ETFs drew $609 million in inflows on 21 May. While this isn’t a record — daily inflows reached $1.3 billion just after the U.S. election — it reflects sustained demand from large investors.
The narrowing supply of Bitcoin, driven by both the halving and more BTC moving into cold storage, may provide future price support.
With fewer coins entering circulation and long-term holders locking up their assets, some analysts see potential for continued upward momentum. However, many warn that regulation, miner behaviour, and institutional activity remain critical factors to watch.
A bull run with eyes on the future
Bitcoin’s momentum is not happening in isolation. It comes at a time when traditional markets are faltering, highlighting a possible decoupling between digital assets and equities.
On 21 May, US stock indexes, including the S&P 500, experienced a sharp selloff following a weak 20-year bond auction. Treasury yields soared, and the S&P dropped 80 points in just 30 minutes, with the Dow and Nasdaq following suit.
Despite this broader market turmoil, Bitcoin remained resilient. Analysts believe this may reinforce Bitcoin’s image as a macro hedge or “digital reserve asset” — a view echoed by Ryan Chow, CEO of Solv Protocol.
He described the new high as “a clear message” that Bitcoin has staying power, adding, “You don’t see BlackRock and Fidelity building infrastructure for a fad”.
Not everyone is convinced the crypto market is fully ready for institutional dominance. Radix founder, Dan Hughes, offered a blunt assessment, saying, “We’re about to find out what happens when Wall Street meets dial-up internet”.
While he acknowledged Bitcoin’s role as digital gold and a store of value, he warned that the existing infrastructure is not yet ready for sustained institutional volume.
The co-founder of Cysic, Leo Fan, pointed to a broader usability issue. “Crypto is still largely seen as a financial instrument… very few engage with blockchain for the technology itself”, he noted.
For the sector to reach mainstream status, it needs to integrate seamlessly into everyday applications, he argued.
The wider crypto market has also benefitted from Bitcoin’s rise — but not equally. Over the past week, Bitcoin has gained 8.5%, far ahead of Ethereum’s 3.2% increase. Binance Coin and Solana rose 4.9% and 3.5% respectively, underlining Bitcoin’s current dominance, which now stands at 66% of the total crypto market.
Speculation about what comes next is already ramping up. According to prediction platform Polymarket, there’s now an 84% chance of Bitcoin reaching $120,000 in 2025 — up from 33% at the beginning of April.
Odds of hitting $150,000 stand at 41%, while the chance of hitting $200,000 is currently 20%.
Analysts from TradingView project a near-term target of $122,069, with others, like Coinpedia, going further and predicting highs of $168,000 by year-end.
These projections are being driven by a combination of institutional buying, tightening supply, and broader economic concerns that continue to fuel interest in alternative assets.
Meanwhile, the crypto world is preparing for two major events. The first is an “exclusive” dinner hosted by President Trump for holders of $TRUMP tokens — with reports suggesting an average seat cost of $1.8 million.
The second is the upcoming Bitcoin 2025 conference in Las Vegas, featuring US Vice President JD Vance as a keynote speaker.
With key milestones achieved and more on the horizon, Bitcoin continues to capture attention across financial and political circles.
As the market eyes the $120,000 mark, all focus remains on whether institutional confidence and a tightening supply can keep pushing prices higher — or whether new challenges will emerge in this evolving cycle.
