Bitcoin has reached a new all-time high, surpassing its January record. According to Coin Metrics, the leading cryptocurrency's price rose by 2% to $108,955.10, briefly hitting $109,500 earlier. Despite initial gains being wiped out after a surge in U.S. Treasury yields and a drop in stock markets, Bitcoin has shown resilience.
Antoni Trenchev, co-founder of crypto exchange Nexo, attributes Bitcoin's surge to several favorable macroeconomic factors, including softer U.S. inflation data, easing trade tensions, and Moody's downgrade of U.S. sovereign debt. These conditions have shifted focus to alternative stores of value like Bitcoin.
After weeks of stagnation amid tariff-related uncertainties, Bitcoin has been climbing steadily in May, with a 15% increase. Data from SoSoValue reveals that ETFs tracking Bitcoin saw over $40 billion in inflows last week, with only two days of outflows in May. The cryptocurrency benefits from stock market liquidity and safe-haven scenarios linked to U.S. tariff and deficit concerns, which have also boosted gold.
On-chain data indicates reduced selling pressure with increased Bitcoin inflows to exchanges and rising crypto market liquidity. Investors are optimistic about regulatory updates and corporate bond investments driving Bitcoin prices higher. Public companies' Bitcoin holdings have risen by 31% this year, now comprising 15% of total supply.
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