FameEX Hot Topics | Bitcoin Hits Record Territory as ETF Frenzy Meets Soft Inflation

On May 21, Bitcoin reached multiple new all-time highs, peaking at $110,730 at 7:15 p.m. Eastern Time. By 8:58 p.m., it had stabilized just below the $110,000 mark following a day of strong upward momentum. Since bottoming at $74,434 on April 6, Bitcoin has surged by 47.82%, gaining over $35,000 in just six weeks.

This rally is primarily driven by sustained spot market demand rather than speculative trading. While short liquidations may have triggered initial upward moves, analysts emphasize that the broader trend is fueled by organic buying. This distinguishes the current rally from past ones dominated by leveraged bets and high volatility.

Three key factors are behind Bitcoin’s strength: consistent spot demand, increasing ETF inflows, and a macroeconomic environment that favors risk-on assets. Strategists point to easing geopolitical tensions—particularly between Russia and Ukraine—alongside dovish signals from central banks and declining inflation data. These conditions have created a favorable backdrop for Bitcoin’s performance.

This price action underscores Bitcoin’s maturing role in mainstream finance. Unlike past bull runs led by retail speculation, today’s rally is increasingly supported by institutional capital through ETFs and long-term macro positioning. As Bitcoin grows in prominence, it faces the challenge of balancing its nature as both a volatile asset and a potential store of value within diversified portfolios.

Looking ahead, market analysts identify $114,000 to $118,000 as the next resistance zone, with $123,000 to $125,000 also in focus due to notable options interest. They believe continued ETF inflows and stable macroeconomic conditions could support further upside. In this context, any short-term corrections may offer strategic buying opportunities rather than indicating a shift in the prevailing uptrend. Bitcoin’s trajectory suggests a robust foundation for potential continued growth in the coming months.

Disclaimer: The information provided in this section is for reference only and does not represent any investment advice or the official views of FameEX.