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Bitcoin smashed through $111,000 for the first time Thursday, driven by massive corporate buying and growing confidence in U.S. cryptocurrency regulations.
The world’s largest digital currency hit $111,782 during Asian trading hours before settling around $110,500. This marks a 40% surge over six weeks, fueled by institutional investors rather than individual traders. It first broke its previous record Wednesday, hitting $109,857 before climbing even higher the next day.
The rally followed weak demand for U.S. Treasury bonds, pushing investors toward alternative assets like Bitcoin. Antoni Trenchev, co-founder of crypto exchange Nexo, told CNBC that “Bitcoin’s new high has been concocted by an array of favorable ingredients in the macro cauldron.”
Corporate treasuries drive demand
Public companies now hold 15% of all Bitcoin in circulation, according to Bitcoin Treasuries. MicroStrategy leads this trend, accumulating over $63 billion worth of Bitcoin.
Michael Saylor’s MicroStrategy has stockpiled over $50 billion worth of Bitcoin, becoming a driving force behind the rally. Other companies are following suit, with new Bitcoin treasury firms launching regularly.
Joshua Lim, global co-head of markets at FalconX, said, “It has been a slow motion grind into new all-time highs.” He noted that buying by special-purpose acquisition companies is helping drive prices higher.
Trade tensions ease and regulatory shifts
The U.S. Senate advanced legislation creating the first regulatory framework for stablecoins. This progress has boosted confidence across the entire cryptocurrency market.
President Trump’s pro-crypto stance has created additional momentum. The advancement of a key stablecoin bill in the US Senate fueled hopes of greater regulatory clarity for digital-asset firms under President Trump, who is avowedly pro-crypto.
Bitcoin’s surge followed a 90-day trade agreement between the U.S. and China announced May 12. The deal temporarily slashed import tariffs to 10%, removing a major source of market uncertainty.
The tariff suspension removed the risk of “sudden re-escalation,” which had a significant impact on risk appetite among traditional and cryptocurrency investors, according to Aurelie Barthere, principal research analyst at crypto intelligence platform Nansen.
Market structure shows strength
Bitcoin’s rapid climb triggered over $500 million in liquidations across crypto derivatives markets in 24 hours. More than 120,000 traders lost their positions, with short sellers taking the biggest hit at almost $300 million in losses.
Bitcoin exchange-traded funds (ETFs) attracted more than $4.24 billion in inflows over the past month, according to SoSoValue. From May 14 to May 20, Bitcoin ETFs recorded consistent net inflows, with May 19 showing $667.4 million in new money.
Data from blockchain analytics provider Sentora shows the rally places every Bitcoin holder in profit. This creates a strong foundation for further gains.
Analysts predict Bitcoin could reach $120,000 or higher, with Jamie Coutts of Real Vision projecting $132,000 by year-end based on money supply growth.
The current rally differs from previous cycles driven by retail speculation. Corporate treasuries and institutional buyers now provide the primary demand, creating what many see as a more sustainable foundation for higher prices.
