Renewed institutional interest, regulatory optimism, and easing trade restrictions has sparked a broad-based rally in the crypto market
The crypto market has been buzzing with optimism as Bitcoin rallied past the $111,000-mark to scale a fresh record high on May 22. The rally was driven by improving prospects for cryptocurrencies amid regulatory clarity in the US as a key Stablecoin Bill advances in the US senate.
“The approval of the Stablecoin Bill and easing trade restrictions have significantly improved investor sentiment, helping Bitcoin hit a new all-time high just four months after the previous peak was scaled in January,” said Edul Patel, Co-founder and CEO of Mudrex.
With the upmove in today’s session, Bitcoin has now bounced back around 48% from its recent lows. The cryptocurrency has also witnessed strong institutional demand that has been a backbone in its ride uphill.
“Institutional demand remains strong, with spot ETFs seeing $2.2 billion in inflows over the past 10 sessions. Furthermore, CryptoQuant data shows a steady return of retail investors, with smaller wallets re-entering the market, bringing fresh liquidity and signalling broader market confidence,” Patel added.
Meanwhile, VK Vijayakumar, Chief Investment Strategist, Geojit Investments also believes that the strength in alternate assets like Bitcoin are also stemming from a state of risk aversion across global markets, which is prompting investors to look into other asset classes.
Looking ahead, Patel anticipates the momentum for Bitcoin to continue. “Bitcoin faces resistance at $111,600 that could be breached if bulls maintain control. This could trigger a decisive move towards the $112,500 mark. On the flipside, $106,200 acts as a major support zone,” he said.
Alongside Bitcoin, Altcoins also joined the rally, with Avalanche climbing 5.3%, Sui up 4.3%, and Cardano gaining 4%. Dogecoin and Solana added 3.5% each, while BNB and XRP rose 3.3% and 1.4%, respectively.
With the ongoing rally, Bitcoin’s market cap has swelled up to $2.21 trillion, now accounting for a majority 63.2% share of the total crypto market. Meanwhile, daily trading volumes spiked 76% to $90.08 billion, showcasing heightened investor activity across the board.