Bitcoin Hits a New All-Time High as 3 Major Catalysts Converge
Institutional demand, new legislation, and whale accumulation help drive Bitcoin into record territory.
Bitcoin (BTCUSD) surged to a fresh all-time high Wednesday, soaring to $109,857 before retreating slightly, and rewriting the crypto record books for the second time this year. The breakout past January’s previous peak of $109,224 wasn’t driven by hype or social media noise. Instead, it marked the confluence of institutional adoption, a friendlier regulatory landscape, and relentless ETF inflows that together lit a fire under the world’s top digital asset.
At last check, Bitcoin held firm near $108,955.10, still up about 2% on the session. The benchmark cryptocurrency has now gained 16% year-to-date and over 15% in May alone. Ethereum (ETHUSD) also ticked higher, trading near $2,612, while XRP (XRPUSD) rose 3% to $2.43 and Dogecoin (DOGEUSD) hovered near $0.29.
Regulatory Wins Fuel Sentiment
Wednesday’s rally found plenty of support from Washington, D.C. and Austin, Texas. The U.S. Senate on Monday advanced the GENIUS Act, a bipartisan bill aimed at regulating stablecoins. While the bill doesn’t directly target Bitcoin, analysts say it signals a sea change in crypto policy.
Austin King, cofounder of Omni Network, commented:
First, record-setting demand from U.S. spot ETFs is absorbing supply faster than miners can create it after last year’s halving, with BlackRock’s IBIT logging a 20-day inflow streak and total ETF inflows topping $3B in May alone. Second, policymakers are shifting from hostility to embrace: the Senate’s bipartisan GENIUS stablecoin bill and Texas’ move toward a state-level Strategic Bitcoin Reserve both widen the regulatory aperture and give institutions the confidence to allocate. Third, a renewed bid for inflation hedges is pulling in large allocators—Blackstone just made its first ETF purchase—while everyday investors look for protection against sticky price pressures.
Texas lawmakers also made headlines this week by advancing a bill to create a state-level Strategic Bitcoin Reserve, adding another layer of legitimacy to crypto’s role in the financial system.
President Donald Trump has voiced support for regulatory clarity. Trump said last week that he wants to see a strong framework for crypto and stablecoins on his desk by August. In another move likely to stir market buzz, the President is hosting a private dinner Thursday at Trump National Golf Club for top holders of his TRUMP meme coin.
Institutional Demand Hits Overdrive
Institutional buying pressure continues to play a central role in Bitcoin’s latest leg higher. BlackRock (NYSE: BLK) owned iShares Bitcoin Trust ETF (NASDAQ: IBIT) extended its 20-day inflow streak, with total ETF inflows surpassing $3 billion in May. Shares of IBIT popped 1.4% on Wednesday, joining a broader rally in spot Bitcoin ETFs.
Coinbase (NASDAQ: COIN), fresh off its inclusion in the S&P 500 (SPX), closed slightly lower after an early bounce. COIN is still up over 33% for the month. Meanwhile, Strategy (NASDAQ: MSTR) pulled back 3.4% but remains up 39% year-to-date. Robinhood (NASDAQ: HOOD) slipped 1.6% after briefly pushing to a new all-time high.
Julio Moreno, head of research at CryptoQuant, pointed to hard metrics as proof of deep-pocketed buying, stating:
I would say that Prices reached a fresh all-time high amid the ongoing growth in spot Bitcoin demand by US investors. This is evident in the positive Coinbase Bitcoin price premium. The total balance of large Bitcoin investors/holders (whales) has climbed to 3.57 million Bitcoin, approaching the record high of 3.75 million reached in February 2021. This also indicates that there’s growing demand from large investors.
That figure now sits just below the all-time record of 3.75 million reached in early 2021, according to CryptoQuant data. With supply tightening and demand surging, the pressure appears firmly skewed to the upside.
ETF Inflows and On-Chain Strength Combine
On-chain metrics further reinforced the bullish backdrop. Exchange balances of Tether (USDTUSD), a key liquidity gauge, reached new highs this week. CryptoQuant analysts say this signals increased buying power among traders. Simultaneously, data shows bitcoin inflows to exchanges remain muted—suggesting reduced selling pressure and a broad reluctance to take profits.
Ben Kurland, CEO of crypto research firm DYOR, described the move as a watershed moment.
“Bitcoin just printed a new all-time high, and it didn’t ask for permission. This is what institutional adoption looks like: steady, relentless, and inevitable,” Kurland said.
He emphasized the significance of this breakout compared to previous rallies, adding: “The market is no longer driven by hype alone; it’s being driven by conviction and deep pockets. But this isn’t just a price milestone. It’s a credibility milestone.”
Broader Market and Macro Tailwinds
Bitcoin’s rise has also been helped along by softening U.S. inflation data, a de-escalation in U.S.-China trade tensions, and a recent Moody’s downgrade of U.S. sovereign debt, which has pushed investors toward alternative stores of value.
“Bitcoin’s new high has been concocted by an array of favorable ingredients in the macro cauldron, namely softer U.S. inflation numbers, a de-escalation in the U.S.-China trade war and the Moody’s downgrade of U.S. sovereign debt, which has put the spotlight on alternative stores of value like bitcoin,” said Antoni Trenchev, cofounder of crypto exchange Nexo.
“We’ve entered an alternate universe very different from early April when global macro concerns were at their peak and bitcoin slumped to $74,000,” added Trenchev.
The mood has turned on a dime. Stocks may remain choppy, but crypto looks increasingly like the calm in the storm. And with whale wallets growing, ETF capital flowing, and regulatory winds finally shifting in crypto’s favor, the latest record may not stand for long.
Bitcoin may have cracked the six-figure barrier in sight, but few in the crypto world believe the rally stops here. The ingredients for continued momentum—liquidity, adoption, and trust—appear to be solidly in place. And if this week’s surge is any indication, the next milestone could arrive faster than most expect.
Read Next: Trump’s Strategic Crypto Reserve: How It Works and Which Coins Are In It
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Disclaimer: Wealthy VC does not hold a position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.
