Bitcoin pierced the $111,000 threshold for the first time in history on May 22, printing an intraday high of $111,867 on Binance, giving the asset a market capitalization of roughly $2.22 trillion, or two-thirds of the entire crypto market. The latest leg of the rally is being propelled by a tight confluence of catalysts that span institutional flows, corporate balance-sheet accumulation, and mounting macro-economic stress.
#1 Spot Bitcoin ETF Inflows
From Wall Street to BlackRock’s vaults, US spot Bitcoin ETFs have turned into a one-way conduit of fresh capital. Farside Investors tallied $607.1 million of net subscriptions on 21 May, of which a blockbuster $530.6 million flowed into BlackRock’s iShares Bitcoin Trust (IBIT). That pushed the 11-day haul to more than $2.7 billion and lifted cumulative net inflows across the complex past $42 billion—an unprecedented pace for a six-month-old asset class.
“Over $500mil into iShares Bitcoin ETF…Nearly $2 bil just over past week or so. Inflows 26 of past 27 days. *$7+bil* in new $$$ overall. Given trading volume today, expect these inflow numbers to increase,” ETF Store president Nate Geraci posted on X. Bloomberg’s Eric Balchunas added that IBIT is posting “its 2nd biggest volume day ever today. Classic feeding frenzy in effect, new ATHs will do that, e.g. last time traded this much was 1/23 (last ATH). All the btc ETFs are elevated, most gonna see 2x their average. Flows incoming.”
#2 Bitcoin Treasury Companies
Parallel to the ETF torrent, a new cohort of listed companies is adopting Bitcoin as a primary treasury asset. Besides Strategy and Metaplanet, these companies bought billions of dollars in Bitcoin in recent weeks. Cantor Fitzgerald’s $3.6 billion SPAC deal will take Twenty One Capital public with more than 42,000 BTC on its books, backed by Tether, Bitfinex and SoftBank. Strive Asset Management is merging with Asset Entities on Nasdaq to create what it calls the first publicly traded asset-manager-led Bitcoin treasury company, equipped with a live $1 billion shelf to keep buying coin.
Battery-tech firm KULR Technology Group lifted its stack to 800 BTC this week after a fresh $9 million purchase. Elsewhere, India’s Jetking Infotrain, Indonesia’s DigiAsia Corp, Brazil’s fintech Méliuz, France’s state lender Bpifrance and David Bailey’s Nakamoto Holdings, now merging with KindlyMD to build “the first decentralised Bitcoin treasury network,” among others, all unveiled accumulation strategies within the past month. Collectively these firms represent billions of dollars in spot, largely price-insensitive demand.
#3 The New Narrative: A Brewing Macro Storm
The macro backdrop is pouring fuel on the fire. Japanese super-long government bonds—once synonymous with near-zero yields—have gone bid-less, sending the 30-year JGB yield to a record 3.14 %. The move tightens the feedback loop linking Tokyo and Washington: Japanese institutions have been among the largest foreign holders of US Treasuries, and analysts warn that disorderly JGB liquidations could force sales of US debt just as the Treasury must refinance roughly $8 trillion this year.
With the WSJ Dollar Index down more than 10% from its January peak and CFTC data showing the biggest speculative short position since mid-2023, investors are casting around for alternatives to sovereign paper. Macro guru Raoul Pal said: “Bond yields are going up. Normally that’s not a good thing… But inflation is falling all the time. The story is liquidity. There’s a lack of liquidity in the bond market, and when yields get too high the government’s reaction function is always and in every case to print more money.”
Global liquidity dynamics add to the case. Global M2—aggregating the money stock in the US, euro-area, China and Japan—bottomed late last year and has risen 3–4 % year-to-date, according to multiple trackers. Bitcoin price inflections typically lag global-M2 turns by about three months; the current rally arrived almost on schedule. As crypto analyst Kevin (@Kev_Capital_TA) observed on X, “Dollar goes down, global liquidity rises, BTC goes higher.”
For some market veterans, the price action signals a deeper behavioural shift. “We are watching BTC transform from a risk-on asset to a risk-off asset,” Multicoin Capital co-founder Tushar Jain wrote after Wednesday’s bond rout and dollar sell-off.
“Today we saw further proof that the government cannot cut the budget deficit. The market reacted by selling US treasuries, selling USD, selling equities, and buying BTC. The transformation is not yet complete. It will take more days like this to convince the market that BTC is a risk off asset. Like most big changes, this will happen slowly and then suddenly,” Jain added.
At press time, BTC traded at $
