Bitcoin Reaches $111,867 All-Time High Amid Record ETF Inflows
Bitcoin surpassed $111,000 for the first time on May 22, reaching an intraday high of $111,867 on Binance and achieving a market capitalization of approximately $2.22 trillion, representing two-thirds of the total cryptocurrency market. This rally is driven by several factors including institutional investments, corporate Bitcoin holdings, and macroeconomic pressures.
#1 Spot Bitcoin ETF Inflows
- US spot Bitcoin ETFs attracted $607.1 million in net subscriptions on May 21.
- BlackRock’s iShares Bitcoin Trust received $530.6 million of those inflows, contributing to over $2.7 billion in total inflows over 11 days.
- Cumulative net inflows across Bitcoin ETFs exceeded $42 billion.
- ETFs recorded inflows on 26 of the past 27 days, with total new capital exceeding $7 billion.
#2 Bitcoin Treasury Companies
- Companies are increasingly adopting Bitcoin as a treasury asset, purchasing billions in recent weeks.
- Cantor Fitzgerald's SPAC deal will take Twenty One Capital public with over 42,000 BTC on its balance sheet.
- KULR Technology Group increased its holdings by buying an additional 800 BTC for $9 million.
- Other companies like Jetking Infotrain and Bpifrance have also initiated or expanded their Bitcoin accumulation strategies.
#3 The New Narrative: A Brewing Macro Storm
- Japanese government bonds have seen record yield increases, leading to concerns about liquidity in the bond market.
- The WSJ Dollar Index has fallen over 10% since January, indicating a shift in investor sentiment towards alternatives to sovereign debt.
- Global M2 money supply has risen 3-4% year-to-date, suggesting a potential correlation with Bitcoin price movements.
- Market analysts suggest Bitcoin is transitioning from a risk-on to a risk-off asset.
