Bitcoin Surges to New Record High Near $112,000 Amidst Growing Institutional Interest

Published: Thursday, May 22, 2025, 2:14 AM EDT
Updated: Thursday, May 22, 2025, 5:51 PM EDT

Bitcoin, the leading cryptocurrency, has reached a new record high, nearing the $112,000 mark in a rally that has captivated market watchers and investors alike. As of Thursday morning, the flagship cryptocurrency was trading at approximately $111,046.88, reflecting an increase of over 2% for the day and peaking earlier at $111,999.00, according to data from Coin Metrics.

Slow and Steady Rise

Unlike previous surges that have characterized Bitcoin’s price history, this latest climb has been notably gradual. Industry experts attribute this steady rise to increasing institutional ownership and heightened corporate interest in Bitcoin. Notable market catalysts include a decrease in trade tensions between the U.S. and China and a recent downgrade of U.S. sovereign debt by Moody’s, which has drawn attention to alternative assets like Bitcoin as potential safe havens.

James Butterfill, head of research at crypto asset manager CoinShares, highlighted these developments in an email to CNBC, stating that Bitcoin’s recent price movement is a result of "a mix of positive momentum, growing optimism around U.S. crypto regulation, and continued interest from institutional buyers."

Market Dynamics

The recent surge in Bitcoin’s price stands in contrast to a decline in U.S. equities observed on Wednesday, primarily influenced by a spike in Treasury yields. While rates experienced a brief increase on Thursday, they subsequently retreated from their peak. Historically, Bitcoin has had a strong correlation with equity markets, notably the Nasdaq. The current divergence between the performance of Bitcoin and stocks suggests that investors are increasingly seeking alternative stores of value amid market volatility.

So far this year, Bitcoin has increased by over 19%. Support for the cryptocurrency market is further reflected in the robust inflows into Bitcoin Exchange-Traded Funds (ETFs), with only two days of outflows reported in May. Additionally, the total amount of Bitcoin held by public companies has skyrocketed by 31% since January, now totaling approximately $349 billion, which represents 15% of the total Bitcoin supply.

Political Support for Cryptocurrency

Support for the cryptocurrency sector has also been bolstered by political developments. U.S. President Donald Trump and his advisor on artificial intelligence and cryptocurrency, David Sacks, have advocated for a pro-crypto regulatory framework in the U.S. This week, the Senate took a significant step by voting to advance the first piece of legislation aimed at creating a regulatory framework for stablecoins, reflecting a growing acceptance of cryptocurrencies in mainstream finance.

Trump has expressed a desire to see crypto regulation ready for his signature by August before Congress goes into recess. In another positive turn, cryptocurrency exchange Coinbase recently became a part of the S&P 500, which many analysts consider a landmark achievement for the industry.

Additionally, JPMorgan, led by CEO Jamie Dimon—who has historically been skeptical about Bitcoin—announced that the bank will allow its clients to purchase the digital currency, signaling a notable shift in sentiment among major financial institutions.

Conclusion

Bitcoin’s ascent to nearly $112,000 marks a significant moment in the cryptocurrency’s trajectory, fueled by a mix of institutional investment, political backing, and the ongoing search for alternative investments in a fluctuating market. As the regulatory landscape evolves and more companies consider Bitcoin as a viable asset, the implications for the cryptocurrency’s future are profound, potentially setting the stage for further growth and adoption in the years to come.

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