Bitcoin Soars Past $111,000 as Wall Street Stumbles

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Written by Aaron S.,

Editor-In-Chief

Last Updated: May 22, 2025

Key Takeaways

Bitcoin climbed past $111,000 as investors reacted to US debt concerns, lower inflation, and rising demand;
Calmer US-China trade ties and friendlier crypto laws boosted confidence in long-term Bitcoin holdings;
Strong ETF inflows, steady momentum, and rising platform activity point to ongoing market strength.

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Bitcoin BTC $111,148.99 climbed past $111,000 on May 22, which marks a new milestone even as US stock markets slipped.

One key reason is the growing belief that Bitcoin can act as a safe alternative when traditional currencies or markets seem shaky. Moody’s recent downgrade of US government debt added to those concerns, which pushed some investors to look for other places to put their money.

On top of that, calmer trade relations between the US and China have created a better environment for digital assets like Bitcoin.

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Lower inflation numbers in the US have also helped. With less fear of aggressive interest rate hikes, investors have shown more interest in stocks and cryptocurrencies.

Bitcoin’s strong performance is not just about the news cycle. Its technical indicators also support the price surge. After breaking through $109,000, it passed several key resistance levels. The Fear and Greed Index shows investors are confident, but not overly so. The RSI is near 70, which suggests healthy buying interest.

BitDegree Crypto Fear and Greed Index James Butterfill from CoinShares told CNBC that Bitcoin’s rise was "driven by a mix of positive momentum, growing optimism around US crypto regulation, and continued interest from institutional buyers".

According to a report from Forbes, Austin King, co-founder of Omni Network, pointed to three major forces driving Bitcoin’s rally.

First, demand from US-based spot exchange-traded funds (ETFs) has been high, with inflows in May alone topping $3 billion. Second, new laws like the bipartisan stablecoin bill in the Senate and Texas’s idea of a state Bitcoin reserve make investors feel more confident about long-term holdings. Third, ongoing inflation concerns push everyday and institutional buyers to look at Bitcoin as a hedge.

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