Top Reasons Why Bitcoin Price Rallied to New ATH Today, May 21

• A number of indicators recommend Bitcoin value has entered the euphoric part of the 2024/2025 rally.

• The gradual improve of crypto FOMO has coincided with the stealth quantitative easing (QE) from the Fed.

Bitcoin (BTC) value rallied over 4 p.c prior to now 24 hours to surpass a earlier psychological ceiling of about $109,353 and attain a file new all-time excessive of round $109,864 on Wednesday, Could 11 through the mid North American buying and selling session. Bitcoin’s market cap surpassed $2.17 trillion, thus overtaking Amazon and Google to develop into the fifth greatest asset on this planet.

The broader altcoin market adopted in tandem, thus the entire crypto market cap rising to round $3.57 trillion. Consequently, round $400 million was rekt from the crypto leveraged, principally involving quick merchants.

Main Forces Behind Bitcoin Pump Immediately

Debt Disaster in america

Because the tariff struggle eases, buyers’ issues have shifted to the excessive U.S. debt amid anticipated stagflation. Earlier this week, Jamie Dimon, CEO of JPMorgan, highlighted that the $36 trillion U.S. debt, which is 122 p.c of the nation’s GDP, is a serious concern.

In the meantime, the Fed just lately repurchased greater than $43 billion in U.S. treasuries, thus quietly returning to quantitative easing (QE). On Wednesday, the 20-year U.S. Treasury yield climbed 5.104 p.c, the best stage since November 2023.

Because of this, Robert Kiyosaki, a monetary educator, noted that the U.S. greenback will proceed to weaken and push BTC value and Gold increased within the close to time period.

Crypto Regulatory Readability within the U.S.

On Wednesday, the U.S. Senate superior the GENIUS Act on stablecoins with the wanted threshold of 60 votes. The invoice now faces potential amendments, which may set the stage for enactment by August.

The notable development of crypto laws in america will assist in the mainstream adoption of digital property, significantly by institutional buyers.

Rising Demand from Institutional Traders 

The general demand for Bitcoin by institutional buyers, led by the U.S. spot BTC ETF issuers and Technique, has considerably elevated prior to now month. Consequently, the general BTC provide on centralized exchanges dropped to a multi-year low, which finally fueled the bullish sentiments.

Technical Tailwinds

Bitcoin value has progressively adopted Gold value, amid the rising world cash provide, within the latest previous. 

From a technical evaluation standpoint, BTC value is effectively positioned to maintain its bullish momentum within the coming days and weeks, catalyzed by institutional and retail FOMO.