Bitcoin has once again become a trending topic after reaching a new all-time high this May. On May 22, it hit $111,970.17 and the market is now asking: what’s next?
In this article, we analyze the keys behind the rally, its implications for the crypto ecosystem, and what investors can expect in this context of volatility and uncertainty.
<p>Bitcoin has reached a new all-time high and the market is asking: what’s next? In this article, we analyze the keys behind the rally, its implications for the crypto ecosystem, and what investors can expect.</p>
📈 Historical Evolution of Bitcoin’s Price
As is well known, Bitcoin was created in 2009 and since then has gone through many bullish and bearish cycles. These cycles have been marked by events such as halvings (the mining reward is halved every 4 years), market events, or changes in cryptocurrency adoption. Some of the events that have most affected Bitcoin’s price are:
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2013: Bitcoin reached $1,000 for the first time.
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2017: The ICO (Initial Coin Offering) boom and growing interest in Bitcoin pushed it to $20,000.
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2021: The entry of Institutional Funds and the growth of the DeFi market took Bitcoin to a new high of $69,000.
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2025: The latest all-time high for Bitcoin due to the consolidation of ETFs and increased institutional adoption and demand.
Main Previous Cycles
Halvings have also had a major impact on the price of Bitcoin (BTC) as they reduce the issuance of new Bitcoins and therefore create upward pressure on the price. These Halvings took place in 2012, 2016, 2020, and 2024.
Although all have the same mechanics, the 2020 Halving came with significant institutional adoption that changed the market dynamic. Now, many companies and funds also use Bitcoin as a store of value or to hedge against inflation.
Comparisons with Other ATHs
In previous bull cycles, Bitcoin was mainly driven by retail investor participation, as both in 2017 and 2021 ICOs and growing interest in blockchain technology stood out.
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In 2017, Bitcoin was wrapped in retail euphoria and very little regulation.
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In 2021, the high was driven by the entry of public companies and institutional interest, which, although still uncertain, was already being felt.
These bull cycles contrast sharply with the latest ATH Bitcoin has reached, and the reasons are very clear. The 2025 rally is led by strong institutional demand, investment funds, ETFs, large corporations, etc. Bitcoin is now a global hedge across all sectors.
An example of this is the approval and success of spot Bitcoin ETFs in the US, or the entry of major managers and corporations into the market like BlackRock or Fidelity through ETFs.
There is also an undeniable favorable regulatory climate. Regulatory changes in powers like the United States have become clearer and more favorable. Legislative advances on stablecoins have also greatly reduced uncertainty for investors and users.
🚀 What’s Driving This Rise?
The recent and impressive rise of Bitcoin above $110,000 is the result of a combination of market factors, macroeconomic context, and institutional moves.
Bitcoin’s rebound comes from events such as the evolution of relations between the United States and China, as it is expected that they will finally reach a favorable trade environment agreement. According to Boomerang:
“Officials in Beijing acknowledged that the tariff hikes imposed by US President Donald Trump have disrupted the global air transport market, and both Chinese airlines and Boeing have been severely affected. As a result, China hopes the US can create a stable and predictable environment for normal trade and investment activities.”
After days of uncertainty, the US and China reached a 90-day tariff pause truce to find a favorable balance. As reported by Los Angeles Times: US Trade Representative Jamieson Greer indicated that the US agreed to reduce its 145% tariff rate imposed by Trump last month to 30%. China agreed to lower its rate on US products to 10% from 125%.
Another bullish factor is the activity of large whales operating in derivatives markets and traders seeking to profit from volatility every day.
On-Chain and Sentiment Factors
During May, the activity of these “whales” (large Bitcoin holders) reached historic levels. Market sentiment is clearly reflected in the Fear and Greed Index, a metric that ranges from 0 (extreme fear) to 100 (extreme greed).
According to CoinMarketCap data, the index is currently in the greed zone, specifically at 65. This value implies that most users expect increases and are willing to take more risks, which goes hand in hand with bullish phases and increased buying activity.
However, it is important to note that markets in the “greed” phase are more susceptible to pullbacks or corrections, so caution is advised.
Economic and Regulatory News
This rally is also driven by news that directly influences the market. Among them is the tariff increase by Donald Trump, which caused great uncertainty regarding the dollar. On the other hand, uncertainty after China-US negotiations leads many to seek safe havens in cryptocurrencies, while global inflation continues to rise.
Meanwhile, during May, the US and Europe have made numerous advances in regulatory frameworks for the crypto sector. This has provided greater legal security and confidence for institutional investors, thus favoring capital inflows into products like Bitcoin ETFs.
💸 Is Bitcoin Overvalued or Is There Room for Growth?
Bitcoin’s current price is around $107,000 and, as always, it continues to generate debate about whether or not it is a speculative bubble. Does it have real value? The answer is quite simple and goes beyond a yes or no. Bitcoin maintains its appeal as a store of value, with its utility for payments and the financial freedom it offers. It is undeniable that speculation is a key driver of its price, but it is certainly an asset with intrinsic value.
In recent months, the phrase “digital gold” has been heard a lot in reference to Bitcoin, leading many to think it could surpass this traditional asset. To begin with, Bitcoin differs from gold in a key aspect: its programmed scarcity. While Bitcoin is limited to 21 million, gold can continue to increase with new extractions.
Although gold stands out for its long history and acceptance, Bitcoin offers ease, divisibility, and transparency. It’s no surprise that many users wonder whether Bitcoin will overtake gold as a store of value in the coming years. It’s worth noting that during May, the value of gold fell by 11% ($3,100 per ounce) while Bitcoin increased its value by 18%.
Source: tradingview
There are also other traditional assets like tech stocks, which, although Bitcoin has shown greater growth, have also shown greater volatility.
Compared to bonds, these offer fixed income and less risk. Bitcoin does not generate periodic returns and its price is much more volatile. However, Bitcoin is positioned more as a store of value to combat high rates and inflation.
🌍 Impact on Traditional Financial Markets
Amid these bullish waves, traditional markets are reacting positively. An example is Wall Street, which, as CoinTelegraph reports, is responding optimistically to this rally by driving the entry of major institutions.
On the other hand, CoinTelegraph reports that spot Bitcoin ETFs are recording massive capital inflows, totaling USD 4.2 billion in the last 10 days.
🔀 Domino Effect on Altcoins and Emerging Tokens
It’s nothing new that when Bitcoin moves, it produces a domino effect on the rest of the market’s altcoins. This rally is boosting both traditional altcoins and emerging tokens. Notable among them are DeFi projects and Layer 2 (L2) solutions like Arbitrum and Optimism, which have seen growth in value and transaction volume.
This rise has also affected coins like XRP, which is near its ATH, and the entire Solana ecosystem, which, according to TradingView data, has increased its TLV by 54% since April. In general, the crypto market has experienced a significant increase in capitalization.
📊 Technical Analysis: Resistances, Supports, and Projections
According to some technical analysts:
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Current resistances: between $110,500 and $112,000 (recent all-time highs)
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Supports: between $100,700 and $91,713, accumulation and defense areas according to CoinTribune analysis
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14-day RSI: 70 (signal of overbought and possible short-term pullback), according to Gate analysis
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50- and 200-day moving averages continue to show a bullish trend
🏛️ Institutional and Government Adoption
It’s a fact that Bitcoin’s legitimacy continues to rise in 2025, driven by, as mentioned earlier, a major wave of institutional adoption. The approval and success of ETFs has been key in this outcome, validating Bitcoin as a legitimate asset for investment portfolios.
According to Criptonoticias, more than 83% of institutional investors expect to increase their exposure to cryptocurrencies this year. Added to this are companies like GameStop and major tech firms that are increasing this adoption rate.
At the state level, use cases are also increasing due to demand from El Salvador, which remains a pioneer in adopting Bitcoin as legal tender. In parallel, part of Europe is working every day to clarify cryptocurrency regulations to consolidate the global integration of cryptoassets.
🧭 What Can Investors Do Now?
In the current environment, it would be favorable to maintain a diversified strategy. Holding cryptocurrencies for the long term and taking advantage of trading opportunities by following trends is also a good option. It’s key to learn to manage risk, and diversification can be a way to protect against unexpected downturns. Most importantly, financial education and following technical and fundamental market analysis signals are essential.
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