Bitcoin sets new all time high above $109,000 amid ETF inflows and regulatory hopes
Bitcoin soared to a fresh all-time high on Wednesday, surpassing its previous January peak and cementing its place at the forefront of the global financial conversation. The price of the world’s leading cryptocurrency climbed as much as 2% to $108,955.10, according to Coin Metrics, after briefly touching an intraday record of $109,857.
The rally came despite a brief intraday reversal, when spiking Treasury yields and falling equity markets saw bitcoin briefly surrender its gains. However, the flagship digital asset quickly regained ground, underscoring its growing resilience in the face of macroeconomic volatility.
After a period of sluggishness fuelled by trade-related uncertainty, bitcoin has staged a robust comeback in May, notching a 15% gain for the month. Behind the surge is a wave of liquidity in equities that has buoyed risk assets, while ongoing concerns over U.S. tariffs and budget deficits have prompted a flight to alternative stores of value like gold and bitcoin.
Exchange-traded funds (ETFs) tracking bitcoin have also seen strong support, with cumulative inflows topping $40 billion last week and only two days of outflows in May, according to data from SoSoValue. On-chain analytics from CryptoQuant further suggest that selling pressure has eased, as evidenced by declining bitcoin inflows to exchanges and record amounts of Tether (USDT), a leading stablecoin, sitting on trading platforms, indicating ample market liquidity.
Investors are closely watching expected regulatory developments and a trend of corporate treasury allocations into bitcoin, both of which are seen as potential catalysts for further price appreciation. The number of bitcoins held by public companies has risen 31% since the start of the year, now valued at about $349 billion, accounting for 15% of the total bitcoin supply, according to Bitcoin Treasuries.
In the policy arena, the U.S. Senate this week advanced legislation to establish the nation’s first regulatory framework for stablecoins, a move seen as critical for the crypto sector’s next phase. President Donald Trump has publicly stated he wants crypto regulation on his desk ready to sign by August, before Congress breaks for recess.
The month also delivered a symbolic boost for the industry, as the leading crypto exchange Coinbase joined the S&P 500, an inclusion many see as a watershed for mainstream crypto acceptance.