Bitcoin soared to a new all-time high on Wednesday, briefly touching $109,500 before easing to around $108,955, up over 2% on the day and more than 16% so far in May, according to Coin Metrics.
The rally marks a sharp turnaround from April, when the cryptocurrency dipped below $74,000 amid heightened global uncertainty.
Exchange-traded funds (ETFs) tied to Bitcoin have drawn over $40 billion in inflows this year, with May recording just two days of outflows. On-chain data shows reduced selling pressure and record-high reserves of Tether (USDT) on exchanges, signaling fresh buying power.
Shares of crypto-linked firms—including Coinbase (COIN), Marathon Digital (MARA), Riot Platforms (RIOT), and MicroStrategy (MSTR)—also traded higher Wednesday, buoyed by strong sentiment across the sector.
Regulatory progress in Washington has added to investor optimism. The US Senate this week passed a bill to regulate stablecoins, and President Donald Trump has expressed support for signing it into law before the August recess.
And Coinbase’s recent addition to the S&P 500 has further solidified crypto’s growing role in traditional finance.
Macroeconomic conditions have also been favorable, with easing US-China tensions, softer inflation, and concerns about fiat currency stability following a Moody’s downgrade of US sovereign debt driving interest in alternative assets like Bitcoin.