Bitcoin Hits All-Time High as Crypto Stocks Surge 5%
On Thursday, May 22, the U.S. stock market experienced a relatively subdued reaction following the narrow approval of a controversial federal budget bill in the House. This bill, which now moves to the Senate, outlines significant spending cuts and tax changes, leading to noticeable shifts in specific market sectors. Meanwhile, Bitcoin hit a fresh all-time high, fueling gains in crypto-related stocks and reviving interest in the broader digital asset market. As traditional equities waver, investors are asking one big question: Stocks or Crypto—where's the better opportunity right now?
The S&P 500 closed nearly flat, dipping just under 0.1%, while the Nasdaq edged up 0.3% and the Dow slipped by a single point. The legislative focus in Washington had immediate sector-specific effects. Renewable energy stocks took a hit, as the new bill aims to roll back clean energy incentives earlier than previously scheduled. One notable loser was a solar energy firm that fell nearly 20% in a single session. Healthcare insurers came under pressure after regulators announced enhanced audits of Medicare Advantage plans. A leading insurer saw its shares plunge over 7%, reflecting market concern about regulatory headwinds. Consumer goods showed weakness, as a major homeware retailer missed margin expectations despite beating sales forecasts. Its shares fell over 4% amid worries about rising operational costs and trade-related tariffs.
On the positive side, Seagate Technology (data storage) shares jumped over 4% after announcing a $5 billion stock buyback, signaling confidence in long-term value. Airline stocks rebounded, with a leading U.S. carrier rising over 3% following a bullish upgrade and optimism around paused U.S.-China trade tensions.
While Wall Street wrestled with politics, Bitcoin (BTC) soared past its previous all-time high. The rally was fueled by growing optimism around U.S. crypto regulation and a shift in sentiment from institutional investors, many of whom now view digital assets as core holdings rather than speculative plays. Riding this momentum, Coinbase Global (COIN) stock surged by 5%, making it one of the best-performing large-cap stocks on Thursday. As the largest U.S.-based crypto exchange by volume, Coinbase is a direct beneficiary of both Bitcoin’s rally and increased market participation.
While equities remain fundamentally sound, especially in defensive and value-oriented sectors, short-term volatility driven by political decisions and regulatory developments is keeping gains in check. In contrast, crypto markets are flashing strong bullish momentum, supported by technical breakouts and legislative clarity. Bitcoin’s new high isn’t just about hype—it’s being driven by real demand, institutional interest, and shifting global narratives. For aggressive investors seeking momentum and growth, crypto might be the more rewarding play right now. But for those preferring predictable income and reduced risk, select equities—especially those unaffected by recent legislation—remain a smart choice.
