Bitcoin Hits New All-Time High Near $110K Amid Bullish Momentum

A surge in institutional demand and easing global tensions propel Bitcoin to new heights with $120K now in sight.

Bitcoin has surged to a new all-time high, fueled by a combination of macroeconomic optimism, institutional buying, and a favorable technical setup. The price reached $109,114.88 on May 21, setting a historic benchmark that has reinvigorated bullish sentiment across crypto markets.

Trade Easing Sparks Renewed Risk Appetite

The rally coincides with a dramatic shift in global trade policy. The United States has recently taken steps to de-escalate tensions with major economic partners, rekindling investor interest in risk assets like cryptocurrencies.

President Trump’s administration announced a temporary tariff reduction agreement with China, providing a 90-day negotiation window to solidify further economic cooperation. The news, delivered through a joint statement from both countries in Geneva, was quickly followed by a limited “Economic Prosperity Deal” between the U.S. and the U.K., aimed at reducing trade barriers and boosting transatlantic market access.

These developments have had a measurable impact. Investors, previously wary amid global economic uncertainty, are now showing renewed enthusiasm for speculative assets. Bitcoin and major altcoins rallied sharply as the shift in geopolitical tone encouraged capital flows back into digital markets.

Institutional Inflows Drive Momentum

Beyond geopolitical tailwinds, the most powerful driver of Bitcoin’s recent surge appears to be institutional capital, particularly through spot Bitcoin ETFs. Leading this charge is BlackRock’s iShares Bitcoin Trust (IBIT), which has consistently topped the charts for ETF inflows since mid-April.

Increased ETF activity suggests a broader reassessment of Bitcoin’s role in institutional portfolios. Analysts at Galaxy Digital noted that this cycle’s demand is being driven by spot market buying rather than leverage, underscoring a more sustainable base for price growth.

Supporting this view, BlackRock’s Jay Jacobs, Head of Thematics, recently emphasized that both sovereign entities and private investors are diversifying away from the U.S. dollar, reallocating toward gold and increasingly, Bitcoin. This shift reflects a broader trend of viewing Bitcoin as a digital store of value, akin to a modern-day reserve asset.

Data from Farside reveals that Bitcoin ETFs posted five consecutive days of net inflows between May 14 and May 20. On May 19 alone, net inflows totaled $667.4 million, followed by $329.2 million on May 20 — underscoring the strength of institutional conviction behind the rally.

Technical Breakout Gains Steam

From a technical standpoint, Bitcoin’s recent move is just as compelling. The asset has held above the $100,000 level for nearly two weeks, demonstrating strong price resilience and historical strength.

Recent daily closes near $106,500 mark a new high in market structure. According to CoinGlass data, approximately $1.2 billion in short positions are now concentrated between $107,000 and $108,000. This creates the potential for a short squeeze, which could drive Bitcoin further toward the $115,000–$120,000 range.

Only four previous sessions have ever closed above the current price level, giving this breakout additional significance. With upward momentum firmly in play, technical analysts point to the clustered shorts and increasing ETF demand as catalysts that could sustain the rally.

Regional Demand Reinforces Bullish Outlook

Bitcoin’s resurgence isn’t just a Western phenomenon. In Asia, high-net-worth individuals are reportedly diversifying away from USD-linked assets and moving capital into gold, Chinese equities, and Bitcoin, further reinforcing the global bullish thesis.

This reallocation trend is being observed amid concerns over long-term U.S. debt sustainability and a weakening dollar, prompting capital flight into harder assets. Bitcoin, with its fixed supply and growing institutional acceptance, is increasingly seen as a hedge against fiat currency depreciation.

Profit-Taking Risks Remain Low — For Now

Despite the strong upward momentum, some analysts caution that profit-taking could trigger volatility if price appreciation continues unabated. However, on-chain data suggests that the current market is far from overheated. The profit-to-loss ratio remains well below red-flag levels, currently sitting at 99 versus a historical caution threshold of 200.

This indicates that while gains have been substantial, most market participants have yet to realize significant profits — a factor that may delay widespread sell-offs and extend the rally’s lifespan.

What’s Next: Can Bitcoin Reach $120K This Month?

With the Federal Reserve under mounting pressure from weak demand for long-dated bonds and a more accommodative macro backdrop, conditions appear favorable for continued crypto upside.

If the current pace of ETF inflows continues and macroeconomic calm prevails, Bitcoin could realistically approach $120,000 within the month. The current combination of spot-driven demand, positive regulatory shifts, and improved global risk appetite creates a strong foundation for sustained momentum.

Conclusion: Bull Market Confirmed, But Eyes on the Fed

Bitcoin’s surge to a new all-time high is more than a technical milestone — it reflects a broad-based shift in investor behavior. As trade tensions cool and institutional confidence grows, crypto markets are once again commanding global attention.

Whether Bitcoin can break the $120K barrier will depend on a delicate balance of continued ETF interest, macroeconomic stability, and potential central bank responses. But for now, the bulls are in control — and the road ahead looks promising.