By Andrew Haruna
May 21, 2025 – New York, USA
Bitcoin surged to a new all-time high on Wednesday, May 21, breaking past its previous record from January, as global investor confidence in the cryptocurrency market soared on the back of favorable macroeconomic signals.
The world’s largest digital asset reached an intraday peak of $109,760.08 before settling at $108,117, up 1.1% on the day. This marks a significant 50% rebound from the lows recorded in April.
Analysts attribute the latest bullish run to a combination of easing trade tensions between the United States and China, and a recent Moody’s downgrade of U.S. sovereign debt, both of which have triggered a flight to alternative assets and weakened the U.S. dollar.
“Now that January’s high has been surpassed, and the 50 percent upside from April’s lows has been achieved, Bitcoin enters blue sky territory with tailwinds in the form of institutional momentum and a favorable U.S. regulatory environment,” said Antoni Trenchev, co-founder of digital asset trading platform Nexo, in a statement to Reuters.
Bitcoin’s sharp rise has closely mirrored a rally in technology stocks, as the Nasdaq index has gained over 30% since early April, driven by renewed risk appetite. The weakening U.S. dollar has also contributed to Bitcoin’s growing appeal as a hedge against fiat currency devaluation.
Adding to investor optimism is growing institutional adoption of cryptocurrencies. Notably, JPMorgan Chase CEO Jamie Dimon, once a staunch crypto critic, announced that the bank will now allow its clients to invest in Bitcoin. In another major development, Coinbase—the largest U.S.-based crypto exchange—was recently added to the S&P 500 index, signifying mainstream acceptance of the digital asset sector.
However, not all news is positive. Coinbase revealed on Monday that the U.S. Department of Justice has launched a probe into a recent data breach at the company, which could potentially raise regulatory scrutiny over data protection in the crypto space.
Despite lingering challenges, Bitcoin’s momentum appears strong, buoyed by an increasingly crypto-friendly regulatory climate and a broad shift by investors toward decentralized financial assets.
