- Bitcoin reached a new record high near $110,000, driven by three main factors.
- Strong demand from U.S. spot exchange-traded funds (ETFs) is reducing available supply.
- Changes in U.S. policy, including supportive legislation and state-level initiatives, are boosting institutional confidence.
- More investors are turning to bitcoin as an inflation hedge, with large investors increasing their holdings.
- Experts note the market is shifting from hype-driven to institution-led, confirming bitcoin’s growing role in the global financial system.
Bitcoin’s price climbed to an all-time high of nearly $110,000 on Wednesday, pushed by a surge in demand and shifts in investor behavior. The digital currency’s rapid rise comes as several structural changes influence the market at the same time.
According to Austin King, cofounder of Omni Network, three main factors are behind this increase. First, U.S. spot bitcoin ETFs are absorbing new supply quickly. BlackRock’s IBIT has seen fund inflows for 20 consecutive days, with total spot ETF inflows in May exceeding $3 billion. Second, recent political developments, like the bipartisan GENIUS stablecoin bill in the Senate and Texas considering a Strategic Bitcoin Reserve, have encouraged more institutions to get involved. Third, big investors are turning to bitcoin for protection against inflation. Blackstone recently made its first ETF purchase in this space.
Additional data from CryptoQuant and its head of research Julio Moreno shows strong investor demand in the U.S. This is evident in the positive Coinbase price premium, which is the difference between bitcoin prices on U.S. exchange Coinbase and other platforms. Moreno added that holdings among large investors known as “whales,” who each own at least 1,000 bitcoins, have grown to 3.57 million bitcoins—nearing the record mark of 3.75 million set in 2021. This trend signals growing demand from major financial players.
Ben Kurland, CEO of DYOR, noted that the new record high shows the market is no longer driven purely by speculation. Now, he said, deep-pocketed institutions provide steady momentum. “Hitting a new all-time high (especially in the wake of decoupling from the traditional markets) shows Bitcoin has earned its place as a credible part of the global financial system,” Kurland stated.
The climb in bitcoin’s price highlights a shift over the past decade. The digital currency has become more resilient in the face of market swings, regulatory actions, and skepticism. Experts suggest that bitcoin’s growing acceptance among traditional and institutional investors signals its lasting presence as a significant financial asset. The move toward more stable, long-term ownership reflects a changing narrative, shifting away from short-term hype.
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