Bitcoin reached a new all-time high of $109,400 on May 21, 2025, fueled by a temporary trade agreement between the United States and China that alleviated macroeconomic fears and enhanced investor confidence. The cryptocurrency's value surged more than 26% over the past month following a deal on May 12, which reduced import tariffs. Analysts noted that the cooperative negotiation tone reduced the risk of sudden market disruptions, appealing to both traditional and cryptocurrency investors. Prior to this surge, Bitcoin had dipped to a year-to-date low of $74,434 on April 7, after President Trump announced new tariffs, causing a significant market downturn. Following this, Bitcoin began a recovery attributed to geopolitical de-escalation and improving regulatory conditions. Experts suggest that liquidity remains strong while the political landscape stabilizes, indicating Bitcoin is transitioning into a high-risk asset amidst macroeconomic stability. Predictions suggest that continued demand may push Bitcoin above $130,000 before the end of 2025, driven by increasing fiat money debasement and correlating with global money supply growth.

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