TLDR
- Bitcoin reached a new all-time high of $111,544 on May 22, 2025
- Weak demand in U.S. Treasury bonds triggered a shift to alternative assets
- Institutional demand rising with ETFs attracting over $4.24 billion in monthly inflows
- Market makers’ hedging activities may slow momentum around $115K
- Analysts predict Bitcoin could reach $180,000 by year-end
Bitcoin (BTC) has reached a new milestone, surging past $111,000 during early Asian trading hours on Thursday, May 22, 2025. The cryptocurrency broke through its previous peak of $109,800 from Wednesday, climbing more than 4% to hit $111,544.
The price movement comes amid growing macroeconomic uncertainty and concerns about traditional safe-haven assets. Investors appear to be shifting capital toward alternative stores of value.
The immediate catalyst for Bitcoin’s latest surge appears to be weak demand in the U.S. Treasury’s $16 billion 20-year bond auction on May 21. Investors pushed for lower prices, driving bond yields above 5.1%.
This ripple effect extended across other maturities. The 10-year and 30-year U.S. Treasury yields climbed to 4.58% and 5.08%, respectively. Japan’s 30-year yield also jumped to a record 3.19%.
When bond yields rise quickly due to poor demand, it may indicate decreasing faith in government debt. These traditional safe havens no longer seem to be playing their reliable role during market stress.
What just happened?
At 1:00 PM ET, the S&P 500 fell nearly -80 points in 30 minutes without any major "news."
What actually happened was a weak 20Y Bond Auction which sent US Treasury Yields soaring.
Investors MUST watch yields here. Let us explain.
(a thread) pic.twitter.com/vymDrRrxrU
— The Kobeissi Letter (@KobeissiLetter) May 21, 2025
Market Dynamics at Play
Bitcoin’s realized market cap has now crossed $912 billion, marking a $27 billion capital inflow since early May. Exchange inflows have dropped 82% since November, suggesting fewer holders are selling.
Bitcoin just hit a new all-time high.
Exchange inflows are down 82% since November.
USDT reserves at $46.9B—liquidity is booming. pic.twitter.com/oQ0dDldVoZ
— CryptoQuant.com (@cryptoquant_com) May 21, 2025
Tether (USDT) balances on exchanges, often viewed as a proxy for crypto buying power, have hit a record $46.9 billion. This indicates substantial buying potential in the market.
Corporate treasuries have been buying Bitcoin over-the-counter “en masse,” according to Alexander S. Blume, founder and CEO of SEC-registered investment advisor Two Prime. There are also rumors of increasing sovereign demand for the cryptocurrency.
Public companies now hold approximately 15% of all Bitcoin in circulation. Strategy recently added $765 million worth of BTC, bringing its total holdings to over $63 billion.
Bitcoin exchange-traded funds have attracted more than $4.24 billion in inflows over the past month, demonstrating growing institutional interest.
Antoni Trenchev, co-founder of crypto exchange Nexo, pointed to soft U.S. inflation data, a U.S.-China trade de-escalation, and Moody’s downgrade of U.S. sovereign debt as factors contributing to Bitcoin’s rise.
The cryptocurrency appears to be increasingly viewed as a hedge against inflation, fiscal instability, and currency devaluation. As traditional safe havens face pressure, Bitcoin’s role as a macro hedge is being tested.
Future Price Outlook
While Bitcoin continues its upward trajectory, some market analysts are watching the $115,000 level, where market makers’ hedging activities might slow the ascent.
Jeff Anderson, head of Asia at STS Digital, notes that dealers hold “positive gamma” exposure at $115K and higher strike price levels in Deribit’s BTC options market. This means their delta-hedging mandate requires selling more of the underlying asset as the price rises.
This order flow acts as a contrarian force that could limit price volatility around these levels. The gamma is particularly positive from $115K to $150K due to investors selling higher strike call options to generate additional yield.
If Bitcoin can clear this “pocket of gamma” at $115K, the rally could accelerate further.
Despite potential short-term resistance, Ryan Lee, chief analyst at Bitget, predicts Bitcoin could rally to $180,000 by the end of the year. This optimistic outlook is based on spot ETF inflows, slower post-halving supply growth, and growing institutional adoption.
Moody’s recent downgrade of the U.S. sovereign credit rating to Aa1 has sparked renewed interest in Bitcoin as a hedge against fiat risk. Bitcoin’s ability to hold above $103,000 amid volatility highlights the market’s shift toward crypto as a strategic reserve asset.
The price of Bitcoin currently stands at $111,544, marking a new chapter in its evolution as a financial asset.
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