Bitcoin reached a new all-time high of $109,400 on May 21, rising over 26% in a month following a temporary trade agreement between the United States and China that eased macroeconomic concerns. The agreement, announced on May 12, reduced import tariffs to 10%, boosting investor confidence and removing threats linked to traditional equities and cryptocurrency markets. Prior to this surge, Bitcoin had briefly fallen to $74,434 on April 7 due to President Trump's tariff announcement, which caused significant market volatility. Experts suggest that the geopolitical de-escalation, alongside improving regulatory conditions and macroeconomic factors, has led to a rotation of capital into Bitcoin as it increasingly becomes viewed as a high-conviction asset. Analysts predict that if funding rates remain stable, Bitcoin could rally to between $114,000 and $130,000 by the end of 2025 as the global money supply continues to grow and investor demand increases due to fiat currency debasement.

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