Optimism over crypto regulation in the U.S. is the primary reason.

Bitcoin has broken new ground, soaring to an all-time high of $109,400.68 on 21 May, surpassing its previous peak of $109,114.88 on 20 January.

The latest surge comes as part of a broader May bull market that has pushed the world’s largest cryptocurrency up 4.52% in the past 24 hours alone. Over the last month, Bitcoin has gained 24.10%, and it's now up a remarkable 55.73% year-over-year.

Bitcoin’s price action shows strong upward momentum. The asset recently broke through its 21-day Exponential Moving Average (EMA), which now serves as a resistance level, while consistent higher highs and higher lows have been forming throughout the past month.

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Beyond technical indicators, several fundamental forces are fueling Bitcoin’s historic climb.

Most importantly, there’s regulatory clarity on the horizon. Optimism is mounting over potential bipartisan passage of the “Genius Act,” a U.S. bill that would establish a clear legal framework for stablecoins and other digital assets.

Investors see this as a watershed moment that could unlock trillions in future capital inflows into the crypto space.

At the same time, the demand for ETF is surging. U.S.-listed spot Bitcoin ETFs are experiencing unprecedented inflows, with billions of dollars entering the market over recent weeks. These regulated investment vehicles are drawing in institutional investors who were previously hesitant to engage directly with crypto exchanges.

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Corporate accumulation is another cause: Companies and funds are steadily increasing their Bitcoin holdings, echoing a trend reminiscent of 2021 but now supercharged by the legitimacy of ETF exposure and stronger balance-sheet integration.

Broader market sentiment is shifting back to "risk-on" as global macro uncertainties ease. A softer U.S. dollar and cooling inflation fears are leading investors to diversify into non-traditional assets, including Bitcoin.

As the digital asset continues to gain mainstream legitimacy — via regulatory developments, institutional adoption, and macroeconomic tailwinds — market observers suggest this may be the beginning of a longer-term revaluation rather than a short-term speculative spike.

With regulatory clarity and growing capital inflows on the horizon, Bitcoin may be entering a new phase of maturity in global finance.

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