Bitcoin Hits New All-Time High at $110,000 Driven by ETF Demand and Policy Shifts

Bitcoin prices surged to a new all-time high, reaching nearly $110,000. This significant milestone was driven by the convergence of three key structural factors, according to analyst Austin King. The first factor is the unprecedented demand from U.S. spot ETFs, which is absorbing supply at a rate faster than miners can produce it. This demand is particularly notable with BlackRock’s IBIT logging a 20-day inflow streak and total ETF inflows exceeding $3 billion in May alone.

The second factor is the shifting stance of policymakers, who are moving from hostility to embrace. This is evident in the Senate’s bipartisan stablecoin bill and Texas’ initiative to establish a state-level Strategic Bitcoin Reserve. These regulatory changes are widening the aperture for institutions to allocate resources with greater confidence.

The third structural tailwind is the renewed interest in bitcoin as an inflation hedge. Large allocators, such as Blackstone, are making their first ETF purchases, while everyday investors seek protection against rising prices. This trend underscores the growing recognition of bitcoin as a viable hedge against inflation.

King’s analysis is supported by other market observers. Julio Moreno, head of research for CryptoQuant, highlighted the intense demand for bitcoin, particularly from U.S. investors. This demand is evident in the positive Coinbase Bitcoin price premium, which has risen in recent weeks. Additionally, the total balance of large bitcoin investors, or "whales," has climbed to 3.57 million, approaching the record high of 3.75 million reached in February 2021. This indicates a growing demand from large investors.

Ben Kurland, CEO at crypto research platform DYOR, emphasized the increasing involvement of institutional investors in the bitcoin market. He noted that the market is no longer driven by hype alone but by conviction and deep pockets. The new all-time high, especially in the wake of decoupling from traditional markets, shows that bitcoin has earned its place as a credible part of the global financial system. Kurland believes that bitcoin has weathered more than a decade of volatility, regulation, and skepticism, emerging stronger each time. The narrative is shifting from speculation to staying power, fueling this breakout.