Bitcoin Approaches $111,000 as Cryptocurrency Trends Surge
By Ines Ferré, Senior Business Reporter
Published May 23, 2025, 2:51 AM
Bitcoin, the leading cryptocurrency, is currently hovering around a new record high just above $111,000 per token. This spike is attributed to a confluence of factors including significant institutional buying, a favorable regulatory climate, and a growing demand for alternative assets amidst mounting concerns over U.S. debt levels.
A New Milestone in the Crypto Market
On Thursday, Bitcoin achieved an all-time intraday high exceeding $111,700. This surge coincides with the progress of a substantial tax-cut bill moving through Congress, which has raised concerns about increasing fiscal deficits and the government’s inclination to print more money.
Matt Hougan, Chief Investment Officer of digital asset management firm Bitwise, explained to Yahoo Finance that this shift in government policy is steering investors towards cryptocurrencies as a safer store of value. “The market today is reacting to the fact that the government has sort of said it’s on board to grow deficits, to print more money, to expand the fiscal debt — and that’s forcing people to look outside of fiat currencies to an alternative,” he noted.
Additionally, rising bond yields reflect investor anxiety about escalating U.S. debt levels, which could diminish long-standing confidence in conventional debt instruments.
Institutional Interest Drives Prices Up
The current rally is further propelled by institutional buying, particularly fueled by over $8 billion that has flowed into Bitcoin-related exchange-traded funds (ETFs) in the past month alone. With more corporate entities, including approximately 80 globally, adopting Bitcoin to bolster their balance sheets—holding around 720,000 tokens as amassed from roughly 3.4% of the total supply—there is a robust demand-side influence lifting prices.
According to Hougan, this increase in demand contrasts against the fixed supply of Bitcoin, which subsequently drives its market price higher. “That’s new demand against fixed supply, and that pushes prices up,” he said.
Regulatory Developments Favoring Crypto
In recent weeks, the crypto landscape has seen promising developments as well. Notably, a significant procedural victory in the Senate on Monday for legislation regulating stablecoins—a type of cryptocurrency pegged to traditional assets like the U.S. dollar—marks a pivotal step towards broader adoption within the sector. This bill is expected to face a vote in the near future.
Moreover, the cryptocurrency exchange Kraken has announced plans to offer "tokenized equities" in popular companies such as Apple, Tesla, and Nvidia to non-U.S. customers. In a monumental achievement, Coinbase became the only cryptocurrency exchange to gain membership in the S&P 500 index, a move representative of the cryptocurrency industry’s integration into traditional financial markets.
Future Outlook
Looking ahead, Bernstein analysts predict a promising trajectory for Bitcoin, estimating that its value could soar to $200,000 by the end of this year. This optimism follows a dramatic 60% increase in Bitcoin’s price since the victory of President Trump, whose administration has been characterized by a more crypto-friendly regulatory approach.
The ongoing interest from both retail and institutional investors underscores a transformative period for the cryptocurrency space, which continues to garner traction as an asset class gaining acceptance and recognition worldwide.
For ongoing updates and further insights into the evolving cryptocurrency market, keep following our coverage.
Ines Ferre is a Senior Business Reporter for Yahoo Finance. Follow her on X at @ines_ferre.
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