In brief:
₿- A new record of $111,500 was reached as soaring demand for alternative assets followed weak interest in U.S. Treasury bonds.
₿- Institutional crypto adoption surges, with Bitcoin ETFs attracting over $4.2 billion in inflows and public firms now holding 15% of total supply.
₿- On-chain data shows rising crypto liquidity, with USDT balances hitting $46.9B and realised market cap climbing to $912B, confirming strong bullish momentum.
The price of Bitcoin soared past $111,500 during early Asian trading on May 22, setting a new all-time high and reinforcing rising interest in alternative assets. The digital asset gained more than 4% from Wednesday’s high of $109,800, bouncing back sharply from a recent dip to $106,000. With this breakout, investor sentiment has clearly shifted—we’re officially bullish again!
Weak U.S. bond auction triggers flight to crypto
The Bitcoin rally comes at a time when global markets are rattled by fiscal instability, prompting traders to turn away from traditional safe havens like bonds and toward harder assets like Bitcoin.
The latest Bitcoin price surge was largely driven by a disappointing $16 billion 20-year U.S. Treasury bond auction on May 21. Demand came in weak, pushing yields above 5.1%. In bond markets, higher yields typically reflect lower confidence—and in this case, the lack of appetite raises red flags about trust in U.S. debt.
Yields on 10-year and 30-year Treasuries also rose to 4.58% and 5.08%, respectively. Meanwhile, Japan’s 30-year yield hit a record 3.19%, showing global concern over sovereign debt reliability. As The Kobeissi Letter noted on X, “Government bonds are no longer reliably playing their safe-haven role during market stress.”
Bitcoin seen as hedge against inflation and fiscal risk
With confidence in government debt crumbling, Bitcoin is gaining ground as a macro hedge against inflation, fiscal instability, and currency debasement. According to Antoni Trenchev, co-founder of Nexo, Bitcoin’s price boost reflects soft U.S. inflation data, easing U.S.-China trade tensions, and Moody’s downgrade of U.S. credit. “It’s possible a three-month window has opened for risk assets to thrive,” he said in a note to CNBC.
On-chain data confirms capital rotation into Bitcoin
On-chain metrics back the bullish trend. Bitcoin’s realised market cap has jumped to $912 billion, signalling a $27 billion inflow since early May. At the same time, exchange inflows have dropped 82% since November—indicating that holders are less willing to sell.
Another key metric, Tether (USDT) exchange balances—often used as a proxy for crypto buying power—just hit a record $46.9 billion. The trend suggests growing liquidity ready to move into Bitcoin and other digital assets.
Institutional investors ramp up Bitcoin exposure
Institutional demand continues to drive Bitcoin’s price upward. Spot Bitcoin ETFs attracted over $4.24 billion in inflows in just the past month, according to SoSoValue. Major firms like Strategy are piling in as well—adding $765 million in BTC and bringing their total holdings to more than $63 billion.
Public companies now hold around 15% of all Bitcoin in circulation, reflecting a broader shift in how major players view crypto’s role in a diversified portfolio. As traditional safe havens falter, Bitcoin’s macro hedge narrative is not just intact—it’s thriving.
Stay informed,
Rodcas Consulting Group