FameEX Hot Topics | Bitcoin Enters New Historical Territory on ETF Surge, Inflation Cooldown

Throughout May 21, Bitcoin repeatedly hit fresh all-time highs, culminating in a peak of $110,730 at 7:15 p.m. Eastern Time. By 8:58 p.m., the cryptocurrency was hovering just below the $110,000 mark, appearing to stabilize after a day of strong upward momentum. This surge marks a 47.82% gain since Bitcoin bottomed at $74,434 on April 6—adding over $35,000 in value within just six weeks.

Analysts attribute this sharp ascent to sustained, organic buying activity in the spot market rather than speculative trading. While initial movements may have involved short liquidations and brief reversals on lower timeframes, experts emphasize that the broader rally reflects genuine demand. This is a marked departure from previous spikes fueled primarily by leveraged bets.

Market strategists highlight three major drivers behind Bitcoin's recent strength: spot demand, inflows from exchange-traded funds (ETFs), and a macroeconomic environment supportive of risk-on assets. They point to easing geopolitical tensions, especially between Russia and Ukraine, dovish tones from global central banks, and softening inflation data as key catalysts creating favorable conditions for Bitcoin to thrive.

This upward momentum underscores Bitcoin’s growing role within mainstream finance. Unlike previous rallies dominated by speculation, the current climb is being underpinned by institutional participation through ETFs and long-term macro positioning. However, this expansion also places Bitcoin at a crossroads—where it must juggle its identity as both a volatile risk asset and an emerging store of value in diversified investment portfolios.

Looking ahead, analysts identify the $114K–$118K range as the next resistance zone, with $123K–$125K also on the radar due to significant options interest. They suggest that continued ETF inflows and stable macro conditions could propel further gains. In this context, any short-term pullbacks should be viewed as buying opportunities rather than trend reversals.

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