Bitcoin Surges to a Record High: Can the Gains Continue?
Prime XBT | May 22, 2025 09:40AM ET
- BTC rises to 111.8k, a new record high
- Digital Gold benefits from US debt concerns
- Regulatory developments – Texas SB21 & Genius Act support BTC
- Bitcoin technical analysis
Bitcoin has extended its rally, setting a fresh record high of 111,880 on Thursday. Bitcoin’s price in discovery mode sees trades looking towards the 120k milestone. The BTC price has rallied 7% this week and 18% so far this month.
To highlight how far BTC has come, 15 years ago today, 10,000 BTC was used to buy two pizzas worth $41. Those pizzas are now worth $1.07 billion, making them the priciest pizza in history!
Bitcoin’s breakout above the January 109.5k peak came as the cryptocurrency experienced a strong recovery following losses across Q1. Institutional demand has recovered, while the macro and regulatory backdrop has spurred gains.
Digital Gold Benefits From US Debt Worries
The latest leg higher comes amid concerns over the growing US deficit as the markets focus on Trump’s “Big, Beautiful Bill,” which is expected to be voted on this week in the House. If approved, the sweeping tax cuts could add $3 to $5 trillion to the ballooning $36 trillion debt pile. Highlighting concerns over rising US debt, a weak 20-year treasury auction spiked treasury yields.
Regulatory Developments Support BTC
Separately, the regulatory backdrop is also offering support. The Texas House of Representatives advanced Senate Bill 21, also known as the Texas Bitcoin reserve bill, following a second reading on Tuesday. The bill sees the creation of a Texas Strategic Bitcoin Reserve, which would allow the state to invest public funds into Bitcoin and other high-quality digital assets. If signed into law, this could set a precedent for others to follow.
Additionally, the US Senate has advanced the Genesis Act, which, if passed into law, would establish the first comprehensive federal regulatory framework for stablecoins. The legislation would allow both banks and non-bank entities to issue stablecoins, increasing legitimacy and institutional demand.
ETFs Rise and Inflows to Exchange Fall
Against this backdrop, BTC ETFs have seen net inflows of $1.61 billion so far this week, marking a sixth straight week of positive flows. Month to date, net inflows have reached $4.2 billion, adding to $2.97 billion in inflows in April. Persistent institutional demand could help the BTC price rise.
On-chain data is also supportive of further gains. Data from CryptoQuan showed that Bitcoin inflows to exchanges have fallen to 22k down from 121k in November, when Bitcoin passed the 100k level for the first time. Lower exchange flows point to lower selling pressure.
Bitcoin Technical Analysis
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BTC has extended its rally from the April low of 74.5k, rising above the January high of 109,5k to an ATH of 111,880. The 50 SMA is crossing over the 200 SMA in a golden cross bullish signal, and strong volumes amid the breakout are also encouraging. With blue skies above, buyers will look towards 115k, the upper band of the rising channel, and the rising trendline dating back to 2017. Above here, 120k comes into focus.
The RSI is above 70, signaling strong momentum and overbought conditions. While an RSI above 70 is often a sign of caution, Bitcoin’s RSI remained above 70 for 18 days in November.
Immediate support is at 109.5k and below; here, 105k could come into focus ahead of 100k.
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