Bitcoin Surges 7.3% to $111,000 on Institutional Investments

On May 22, 2025, Bitcoin achieved a significant milestone by surpassing $111,000, marking a new all-time high. This surge coincided with Bitcoin Pizza Day, an annual commemoration of the first real-world Bitcoin transaction in 2010, when 10,000 BTC were exchanged for two pizzas. The symbolic date amplified market enthusiasm, with Bitcoin gaining 7.3% over the past seven days. This price increase positioned Bitcoin as the fifth-largest global asset by market capitalization, surpassing Amazon's $2.07 trillion valuation with its own market cap of $2.17 trillion. This milestone underscores Bitcoin's growing legitimacy and influence in the global financial landscape.

The rally in Bitcoin's price was driven by strategic moves from institutional investors and large crypto whales. Spot Bitcoin ETFs saw record inflows of nearly $7 billion since April, reflecting robust institutional confidence in Bitcoin as a long-term store of value. This surge in ETF investments, particularly through vehicles like BlackRock’s iShares Bitcoin Trust, which manages over $56 billion in assets, highlights Bitcoin’s growing acceptance among traditional finance players. Additionally, JPMorgan’s $1.7 billion investment in Bitcoin ETFs signals a broader institutional embrace, further fueling bullish sentiment. Whales also played a significant role, with three Hyperliquid whales placing $1 billion in 40x leveraged long positions on Bitcoin, indicating a strong belief in an imminent price breakout. Another whale entered a 900 BTC position at $110,130.5, with an unrealized profit of approximately $1.3 million, further bolstering market confidence.

According to Alex Obchakevich, founder of Obchakevich Research, the latest rally “will strengthen confidence in Bitcoin and lead to new injections into the crypto market.” The surge came as Bitcoin set a new all-time high and now trades above $110,000, which Obchavich said will “attract new investors to large funds.” Obchakevich noted that institutional players continue to play a growing role in the digital asset space. “In May, BlackRock became the second largest bitcoin holder after Satoshi Nakamoto, surpassing Binance in this indicator.”

Hassan Khan, the CEO of Bitcoin liquidity platform Ordeez, explained that “Bitcoin is no longer simply a hedge, it’s in the process of becoming a benchmark currency.” The crypto market approaches new highs. According to CoinMarketCap data, the total cryptocurrency market cap stood at $3.49 trillion at the time of writing. While high, this is still nearly 6% lower than the all-time high of $3.71 trillion reported at the end of 2024. More CoinMarketCap data shows that Bitcoin exchange-traded funds (ETFs) saw nearly $604 million of net inflows on May 21. The current open interest on crypto derivatives is $756.16 billion for perpetual swaps and $3.24 billion for futures. Looking into the future, Obchakevich shared his view on Bitcoin’s direction: “We are moving gradually towards $200,000, with gradual adjustments. I am sure that this year we will see Bitcoin at $150,000 and $90,000.”

Khan said that “large net inflows to ETFs and increasing open interest demonstrate that institutional confidence is growing.” Looking forward, he said: “Short term profit taking and macro rate uncertainty are tempering momentum. But below-the-surface metrics […] point to continued high conviction. The foundation is more solid than in any other cycle before it.”

Ulli Spankowski, chief digital officer at Boerse Stuttgart Group, said that, nowadays, Bitcoin “boasts a market capitalization of over 2 trillion US dollars, ranking it as the fifth-largest asset globally, behind gold and the three largest publicly traded companies.”