Bitcoin Hits New All-Time High and ETFs Explode

The reigning cryptocurrency defies expectations, surpassing $111,000 and attracting a tsunami of institutional capital as the dollar falters and US debt worries arise.

The price of Bitcoin made history again, reaching a new all-time high for the second consecutive day, trading at $111,980. The world's leading cryptocurrency posted daily gains of 1.87%, pushing higher amid a weaker dollar and growing concerns about rising US Treasury yields. This milestone underscores Bitcoin's role as a vital hedge during times of heightened economic uncertainty, driven by the US government deficit and rising debt yields. Meanwhile, the ETF market also reached new all-time highs, signaling a massive inflow of capital.

The Bitcoin price is in a clear bull market, consolidating in an expansion zone. / TradingView

Crypto Market Frenzy: Capitalization on the Rise and ETFs Setting Records

The crypto market as a whole continues to receive an unprecedented injection of capital, bringing its total capitalization to a staggering $3.52 trillion. The market capitalization of Bitcoin and altcoins, meanwhile, is dangerously close to its all-time high of $3.72 trillion by December 2024, demonstrating unwavering investor confidence. However, the Fear and Greed Index is already at the top of the greed zone, reaching 76 points, a sign of caution for some analysts.

Institutional Investment in Full Swing: ETFs Fuel the Rally

Capital flow into Bitcoin has intensified through ETF investment vehicles. The value of digital assets under custody reached a new record, reaching $131.57 billion. The market capitalization of Bitcoin ETFs also set a new record, reaching $134.77 billion. The most significant activity was observed in the trading volume of Bitcoin ETFs over the past three days, which skyrocketed, reaching $7.92 billion traded through these instruments on May 21. This massive volume is a clear indicator of a strong inflow of capital from institutional investors, validating the growing acceptance of Bitcoin in traditional finance.

Bitcoin Open Interest and the Expansion Zone

Bitcoin open interest registered a slight increase of 1.64% in the last 24 hours, reaching $79.94 billion, according to data from Coinglass. This comes after reaching an all-time high of $80.31 billion on May 22, confirming the growing interest among traders in cryptocurrency futures and options.

The price of Bitcoin is in a clear bull market, consolidating in an expansion zone. Its current price remains 14% above the 50-period moving average on the daily chart. While this situation typically generates expectations of pullbacks or declines for some traders looking for new entries, Bitcoin is confirming new solid support in the $107,000 area. Furthermore, the 50-period exponential moving average is quickly moving toward validating a fixed support located at $100,000. This upward movement on the daily chart was accompanied by relatively high trading volume on Binance, surpassing the 25-day average, reinforcing the strength of the current trend.

Disclaimer: The information provided in this news item is for informational purposes only and does not constitute financial advice. Investing in cryptocurrencies carries significant risks.