Bitcoin has surged past the $110,000 mark, setting a new all-time high and outperforming both U.S. equities and gold. This historic rally coincides with significant progress in U.S. stablecoin legislation, fueling investor optimism about clearer regulatory pathways under the current administration. The momentum reflects growing institutional adoption, corporate treasury strategies, and renewed confidence in digital assets as a macro hedge.
A New Record Amid Broader Market Strength
During Thursday’s Asian trading session, Bitcoin broke through the $110,000 resistance level, surpassing its previous peak set on January 20, 2025—coinciding with the presidential inauguration. The move marked a more than 2.7% gain for the day and extended its year-to-date appreciation to approximately 17%. Since May, Bitcoin has climbed nearly 16%, demonstrating sustained bullish momentum.
This performance outshines traditional risk assets like the S&P 500 and even gold, which has historically served as a safe haven during economic uncertainty. Since the end of the U.S. election cycle, Bitcoin has significantly outperformed gold, reinforcing its evolving role as a store of value amid rising fiscal concerns.
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Ripple Effects Across the Crypto Ecosystem
As Bitcoin reached new highs, the broader cryptocurrency market followed suit. Major altcoins including Ethereum, XRP, and Solana posted gains, with all top 10 cryptocurrencies by market capitalization recording positive returns over the past 24 hours.
The rally also lifted blockchain and crypto-related equities in U.S. markets. Notable performers included:
- CRPT: +14.52%
- DAPP: +10.8%
- CleanSpark: +8.3%
- BTC Digital: +6.5%
- Ninth City ADR: +5.8%
- Galaxy Digital: +5.6% after its U.S. direct listing
- MARA Holdings: +4.7%
- TeraWulf: +4.1%
- Bitmain ADR: +3.6%
- ProShares Bitcoin Strategy ETF: +3.2%
- Applied Digital: +2.9%
Interestingly, MicroStrategy (now rebranded as Strategy, ticker MSTR), one of the largest corporate holders of Bitcoin, saw a relatively muted gain of just 0.9%, suggesting that market drivers are broadening beyond single-entity influence.
U.S. Stablecoin Bill Gains Momentum
The timing of Bitcoin’s breakout aligns with legislative advancements in Washington. A bipartisan-backed stablecoin regulatory framework is now poised for debate in the U.S. Senate, with hopes of a swift passage possibly within the week.
Key provisions in the revised bill include:
- Stricter anti-money laundering (AML) requirements
- Equal regulatory standards for domestic and foreign stablecoin issuers
- Enhanced consumer protection mechanisms
- Restrictions on tech companies issuing private stablecoins
This legislative progress signals a shift from the previous SEC-led regulatory uncertainty under Gary Gensler to a more industry-friendly approach under the current administration.
Michael Novogratz, CEO of Galaxy Digital, commented: "This represents a clear pivot—from enforcement-heavy regulation to innovation-friendly policy. The fact that the administration is embracing our industry unlocks investor enthusiasm and capital flow."
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Bitcoin as a Macro Hedge?
Amid ongoing U.S. budget negotiations and widening deficit spending, some investors are increasingly viewing Bitcoin as a hedge against fiscal instability.
When trade tariffs previously triggered financial market volatility, Bitcoin emerged as a potential避险 (safe haven) asset. Now, with rising national debt levels and pressure on the U.S. dollar, this narrative is gaining traction.
“With long-term interest rates climbing and yield curves flattening, confidence in traditional fiat systems is being tested. In this environment, hard-capped digital assets like Bitcoin become more attractive,” said a macro strategist at a leading investment firm.
As global investors seek alternatives to sovereign debt and currency devaluation risks, Bitcoin’s fixed supply of 21 million coins positions it uniquely in the digital age.
Corporate Adoption Accelerates
Beyond regulatory tailwinds, corporate adoption continues to drive demand for Bitcoin. Led by Strategy (formerly MicroStrategy), companies are integrating Bitcoin into their treasury reserves at an unprecedented pace.
Key Developments in Institutional Adoption:
- Strategy has accumulated over $50 billion worth of Bitcoin, reinforcing its long-term conviction.
- Bitcoin mining firms and smaller-cap companies are issuing convertible bonds and preferred shares to offer indirect exposure to investors.
- Cantor Fitzgerald’s affiliate is partnering with Tether Holdings SA and SoftBank Group to launch Twenty One Capital, a new entity modeled after Strategy’s Bitcoin acquisition strategy.
- Strive Enterprises Inc., co-founded by Vivek Ramaswamy, is merging with Nasdaq-listed Asset Entities to form a dedicated Bitcoin treasury company.
- GameStop, once a meme stock favorite, announced in March that its board approved holding Bitcoin as a reserve asset—directly emulating Strategy’s playbook.
These moves reflect a growing trend: Bitcoin is no longer just an investment for retail traders or hedge funds—it’s becoming a legitimate component of corporate balance sheets.
Options Market Bets on Further Gains
Deribit data shows that traders have built substantial bullish positions ahead of key expiration dates. Contracts with strike prices at $110,000, $120,000, and even $300,000 are among the most heavily traded, with expiry set for June 27.
Amberdata reports a surge in short-term call options above $110,000 over the past 24 hours, indicating strong sentiment for continued upside.
Meanwhile, liquidations across crypto derivatives markets remain low—around $200 million in the last day—suggesting that the rally is not fueled by excessive leverage but rather by fundamental demand.
On the institutional side:
- CME Group’s Bitcoin futures open interest has risen 23% from its April 2025 low.
- U.S.-listed Bitcoin ETFs attracted approximately $3.6 billion in inflows during May alone.
This sustained capital inflow underscores growing trust in regulated crypto products and reflects long-term strategic allocation by institutional investors.
Frequently Asked Questions (FAQ)
Q: What caused Bitcoin to break $110,000?
A: A combination of factors drove the surge: progress in U.S. stablecoin legislation, increased corporate adoption (e.g., Strategy, GameStop), strong ETF inflows, and growing perception of Bitcoin as a macro hedge against fiscal deficits.
Q: Is Bitcoin now considered a safe-haven asset?
A: While still debated, increasing adoption during periods of economic uncertainty—such as tariff disputes and budget deficits—suggests Bitcoin is gaining recognition as an alternative store of value alongside gold.
Q: How are companies using Bitcoin in their treasuries?
A: Firms like Strategy hold Bitcoin as a long-term reserve asset. Others are creating financial instruments (e.g., convertible bonds) or forming new entities to provide investors with indirect exposure.
Q: What does the stablecoin bill mean for crypto investors?
A: Clearer rules for stablecoin issuance increase transparency and trust. It may accelerate mainstream adoption and encourage more institutional participation in digital asset markets.
Q: Are recent price gains driven by speculation or fundamentals?
A: Unlike past rallies fueled by retail speculation, this move is supported by strong fundamentals—including ETF flows, corporate balance sheet changes, and regulatory clarity.
Q: Could Bitcoin reach $300,000 as some options suggest?
A: While speculative, such high-strike contracts reflect growing confidence in long-term appreciation. Macroeconomic trends like monetary expansion and digital transformation could support higher valuations over time.
The confluence of regulatory progress, corporate strategy shifts, and macroeconomic pressures is redefining Bitcoin’s role in global finance. As adoption deepens and markets mature, digital assets are increasingly positioned not just as speculative instruments—but as foundational components of modern portfolios.
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