On Thursday, May 22, Bitcoin continued its rise, reaching a new high of $111,886.41 before falling slightly to $111,012, CNBC reports.
Experts attribute this to several factors. As noted by James Butterfill, head of research at crypto investment company CoinShares, the current growth is due to positive market dynamics, growing optimism about cryptocurrency regulation in the United States and stable demand from institutional investors. In addition, investors may consider Bitcoin as an alternative to traditional assets amid economic uncertainty.
One such macroeconomic factor was the recent downgrade of the US sovereign credit rating by Moody's, which strengthened Bitcoin's position as a hedge against potential fiat currency volatility.
Regulatory progress is also playing into the crypto market’s favor. The GENIUS bill, aimed at regulating stablecoins, passed a key vote in the US Senate. At the same time, Donald Trump’s administration is actively promoting crypto-friendly policies, including with the participation of AI and cryptocurrency advisor David Sachs.
Adding to the momentum was the announcement by JPMorgan CEO Jamie Dimon, who had previously been skeptical of bitcoin, that the bank would allow customers to buy the cryptocurrency. The move could send an important signal to the rest of the financial industry, which has been wary of digital assets.