Bitcoin recently surpassed the $111,000 mark, reaching a historic high as bullish sentiment around cryptocurrencies continues to grow. The Trump administration's supportive stance on cryptocurrencies and the influx of institutional funds have brought Bitcoin back into the spotlight for global investors. During trading, Bitcoin rose by 3.3% to hit $111,878, marking its highest price ever, although it slightly retreated afterward. Ethereum also experienced gains, with an intraday increase of 7.3%.
Investor optimism is partly fueled by a stablecoin bill progressing in the U.S. Senate, signaling potential regulatory clarity for the crypto industry under the Trump administration. Strategy (MSTR, Financial) has played a significant role in this rally by accumulating over $60 billion worth of Bitcoin. The company plans to issue up to $2.1 billion in perpetual preferred stock to further increase its Bitcoin holdings, reflecting strong institutional confidence.
Meanwhile, Twenty One Capital, backed by Tether, SoftBank, and Cantor Fitzgerald, aims to follow Strategy's model by creating a Bitcoin-centric treasury. Strive Enterprises, co-founded by Vivek Ramaswamy, is merging with Asset Entities Inc. to establish a Bitcoin reserve-focused company.
Bitcoin's performance is increasingly diverging from other altcoins, with Bitcoin up 18% year-to-date, while mainstream altcoin indices have fallen by around 40%. In the U.S., Bitcoin spot ETFs have seen significant inflows, with $4.2 billion added in May alone. The options market also shows strong bullish sentiment, with traders placing high-value call options on Bitcoin, indicating expectations for further price increases.
