Bitcoin Surpasses $110,000, Market Makes Shocking Prediction

Global financial markets have just witnessed a dramatic new chapter for bitcoin. The world's largest cryptocurrency officially set a new price record, reaching $110,636.58 before stabilizing around $110,049.82, recording a 1.6% increase on the day.

The move follows an impressive rally from the previous day, when bitcoin surpassed its previous January high and traded around $108,117 after hitting a peak of $109,760.08.

Investors are wondering whether the "blue sky" (a term used to describe a state where there are no more technical barriers) is really opening up for bitcoin as experts say?

Earthquake from Washington: USD weakens, bitcoin "reigns"

One of the main drivers behind bitcoin’s spectacular surge comes from the uncertainties in the world’s largest economy . The US dollar plunged to a two-week low against the yen this morning (May 22).

The reason is said to stem from deep concerns about the US fiscal situation, especially after the unsuccessful auction of 20-year Treasury bonds.

In addition, President Donald Trump’s push for a massive spending bill and tax cuts has raised concerns about the national debt, with nonpartisan analysts estimating that the bill could add between $3 trillion and $5 trillion to the national debt.

"While stocks are down, the dollar is not getting the traditional safe haven flows. Instead, gold, the euro and the yen are benefiting," said James Kniveton, senior FX trader at Convera. Bitcoin has emerged as an attractive alternative investment. In fact, gold has also benefited, rising to a near two-week high of $3,325.79 an ounce.

Moody's downgrade of the US's AAA credit rating last week also contributed to the "sell America" ​​sentiment, causing investors to seek alternative assets to the greenback. Antoni Trenchev, co-founder of digital asset trading platform Nexo, said the move "spurred investors to seek alternative investment channels to the US dollar".

While the US dollar fell due to concerns about public debt and Mr. Trump's "aggressive" spending policy, bitcoin suddenly skyrocketed to more than 110,000 USD - breaking all historical records (Photo: Reuters).

Institutional cash flow and legal "east wind": A solid launch pad

Not only benefiting from the weakening USD, Bitcoin also received a strong boost from the increasingly widespread acceptance of traditional financial institutions. Mr. Trenchev emphasized: "Bitcoin officially entered the "blue sky" supported by institutional money and a favorable legal environment in the US".

A clear example is the recent statement by JPMorgan CEO Jamie Dimon. Originally skeptical of cryptocurrencies, he has now agreed to let his bank customers buy bitcoin. This event, along with the official inclusion of cryptocurrency exchange Coinbase in the S&P 500 index, confirms the growing position of digital assets in the financial mainstream.

Although Coinbase confirmed on Monday (May 19) that the US Department of Justice is opening an investigation related to the recent data breach, the news did not seem to dampen the market's rally.

In addition, signs of easing trade tensions between the US and China have also contributed to improving risk-on sentiment in the market, creating conditions for assets like Bitcoin to flourish. Bitcoin often trades similarly to technology stocks or assets that increase in price when investors are positive. The Nasdaq index, which is home to many technology stocks, has increased 30% from its low in early April, clearly reflecting this trend.

History Repeats: $150,000 Bitcoin in 2025?

Looking ahead, Antoni Trenchev offers an optimistic forecast: "We are still in year 4 of the bitcoin price cycle - the year after the halving (halving the reward for miners), which historically has been the time when bitcoin has had its biggest breakout. While the macro backdrop is still uncertain and volatility may return, the target of $150,000 in 2025 is still entirely feasible."

This analysis is based on the cyclical nature of bitcoin, where each “halving” (which occurs every four years, reducing the supply of new bitcoins by half) is followed by a strong price surge. If history repeats itself, bitcoin still has a wide open road ahead.

However, not all cryptocurrencies are joining in the party. Ether, the second largest cryptocurrency in the market, surprisingly did not increase in the same direction as bitcoin, even recording a decrease of 0.5%, down to $2,513 when bitcoin peaked on May 21. This shows that the money flow is being selective and strongly focused on the "king" of the cryptocurrency market.

Bitcoin’s meteoric rise to new heights paints an exciting yet challenging picture for financial markets. The combination of macro factors such as a weakening US dollar, US fiscal uncertainty, growing acceptance from major financial institutions, and internal factors such as the “halving” cycle are creating a “perfect storm” for bitcoin.

Although the $150,000 target that experts have given seems ambitious, with what is happening, nothing is impossible in the world of cryptocurrencies. However, investors also need to be very careful, because violent price fluctuations are always a "specialty" of this market.

It is unclear whether bitcoin will continue its journey to conquer space, or whether a strong correction is ahead, but it is certain that bitcoin will continue to be at the center of every financial discussion in the coming time.

Source: https://dantri.com.vn/kinh-doanh/bitcoin-vuot-110000-usd-thi-truong-xuat-hien-du-bao-gay-soc-20250522102652781.htm