Bitcoin reached a new all-time high on Wednesday, May 21, 2025, reaching nearly 109,500 USD. This surge marks a new all-time high for the world’s most valuable cryptocurrency, surpassing its previous peak in January 2025, which coincided with Donald Trump’s inauguration as President of the United States.
Factors supporting this rise
Favorable political and regulatory climate in the United States
Bitcoin enjoys “broad bipartisan support” in the U.S. Congress for the regulation of stablecoins, digital assets backed by traditional currencies and considered more secure. Democrats and Republicans have agreed on a regulatory framework, which has reassured investors and stimulated demand for bitcoin.
Easing of international trade tensions
A temporary 90-day trade agreement between the United States and China, formalized in early May, led to a reduction in tariffs and allayed fears of an escalation in the trade war. This truce has revived risk appetite in the financial markets, directly benefiting bitcoin, which has risen by more than 26% in one month.
More Favorable Macroeconomic Context
Improved international relations, including a historic compromise with the United Kingdom, and the suspension of numerous tariffs between China and the United States, have contributed to a climate of optimism in the markets.
Trump Administration’s Pro-Crypto Policy
Donald Trump, during his campaign and since his re-election, has taken a pro-crypto stance, notably promising the creation of a strategic national bitcoin reserve, an initiative that has now been implemented.
Market Outlook and Reactions
Bitcoin’s market capitalization now stands at over USD 2.16 trillion. Analysts believe this trend could continue, with some anticipating it crossing the USD 110,000 threshold in the coming days, or even rising to USD 180,000 by the end of the year, driven by the influx of institutional capital, the rise of bitcoin ETFs, and the effects of the latest halving.
This new record illustrates the resilience and growing attractiveness of bitcoin in a context of a changing global financial landscape, where cryptocurrency is increasingly perceived as a diversification asset, or even a refuge, in the face of economic uncertainty.
