Bitcoin Surges Past $110,000 USD, Fueled by Institutional FOMO and Regulatory Optimism

New Delhi: The cryptocurrency market is riding a wave of unprecedented momentum, with Bitcoin (BTC) shattering records by surging past $110,000 USD (approximately £86,000) in May 2025, peaking at $111,980 USD on May 23, according to market analysts. While claims of BTC breaking £110,000 remain unverified, the rally has sparked global excitement, driven by institutional adoption, pro-crypto regulatory shifts under the Trump administration, and bullish market sentiment. Here’s a deep dive into the latest trends shaping the crypto landscape.

Bitcoin’s Meteoric Rise: A Perfect Storm of Catalysts

Bitcoin’s ascent to new all-time highs has been fueled by a confluence of factors, cementing its status as a mainstream financial asset. The cryptocurrency crossed the psychological $100,000 USD barrier in December 2024 and has since climbed steadily, with a 60%+ rally in 2025 alone, according to Blockchain Magazine. Analysts attribute this surge to three key drivers: institutional investment, regulatory tailwinds, and technical bullishness.

Institutional FOMO: Corporations and ETFs Lead the Charge

Institutional adoption is at the heart of Bitcoin’s rally. Spot Bitcoin exchange-traded funds (ETFs), approved by the U.S. Securities and Exchange Commission (SEC) in January 2024, have been a game-changer, amassing over $50 billion in assets under management (AUM). Major players like BlackRock and Fidelity have driven inflows, with Bitcoin ETFs attracting $36 billion in 2024 alone, outpacing many traditional ETFs.

MicroStrategy, the poster child for corporate Bitcoin adoption, has continued its aggressive accumulation, holding over 500,000 BTC worth more than $60 billion as of June 2025. The company’s stock surged 540% in 2024, and its inclusion in the Nasdaq-100 Index in December 2024 has exposed millions of portfolios to Bitcoin. Other corporations, including Trump Media & Technology Group ($2.5 billion Bitcoin investment) and Japan’s Metaplanet (7,800 BTC), are following suit, with over 116 public companies now holding $2 trillion in Bitcoin collectively—a 300% increase from 2024.

Posts on X reflect this institutional fervor, with one user noting, “Appetite for crypto exposure has never been higher… various entities alongside @saylor buying multi-billions worth of Bitcoin on their balance sheets.” This institutional FOMO (fear of missing out) has created a self-reinforcing cycle of demand, pushing prices higher.

Regulatory Optimism: Trump’s Crypto-Friendly Agenda

The election of President Donald Trump in November 2024 has supercharged crypto markets. Trump, once a crypto skeptic, has embraced digital assets, promising to make the U.S. the “crypto capital of the planet.” His administration’s pro-crypto policies have sparked widespread optimism, with 60% of Americans familiar with crypto believing prices will rise under his leadership, according to a Security.org survey.

Key regulatory developments include:

Strategic Bitcoin Reserve: On March 6, 2025, Trump signed an executive order establishing a Strategic Bitcoin Reserve, consolidating seized digital assets under the Treasury Department. This move positions Bitcoin as a national reserve asset, enhancing its legitimacy.

GENIUS Stablecoin Act: The Senate’s 66-22 vote in June 2025 advanced the GENIUS Act, a framework for stablecoin regulation. Expected to pass soon, the bill addresses investor protections and criminal misuse, boosting demand for U.S. Treasuries, according to White House crypto czar David Sacks.

SEC Leadership Shift: Trump’s nomination of Paul Atkins, a pro-crypto former SEC commissioner, as SEC Chair has eased regulatory fears. Atkins’ creation of a Crypto Task Force, led by Hester Peirce, aims to develop clear digital asset guidelines, replacing enforcement-heavy approaches.

These shifts have reduced regulatory uncertainty, encouraging institutional investors and fintechs like Robinhood and PayPal to expand crypto offerings.

Market Sentiment and Technical Indicators

Market sentiment is overwhelmingly bullish, with the Crypto Fear and Greed Index hitting “extreme greed” in May 2025, a precursor to price rebounds. Technical indicators, such as a “golden cross” on Bitcoin’s 30-day and 200-day moving averages, signal sustained upward momentum. Analysts project Bitcoin could reach $130,000 to $200,000 by year-end, with Galaxy Digital targeting $185,000 in Q4 2025.

However, volatility persists. Bitcoin retraced to $105,363.38 on June 3, 2025, after negative ETF outflows of $157 million, reflecting short-term consolidation. Despite this, the global crypto market cap stabilized at $3.3 trillion, underscoring resilience.

Beyond Bitcoin:

Altcoins and Stablecoins ShineWhile Bitcoin dominates, altcoins and stablecoins are gaining traction:

Ethereum (ETH): ETH surged 4% to $2,725 on May 29, 2025, driven by the Pectra upgrade and 11 consecutive days of ETF inflows. Analysts see ETH challenging $3,000 soon, bolstered by its smart contract dominance.Stablecoins: Circle’s IPO, 25x oversubscribed, highlights stablecoin legitimacy. The GENIUS Act and BlackRock’s 10% stake in Circle are set to drive adoption, with stablecoin supply expected to support dollar dominance.

Solana (SOL): Trading at $160–$170, Solana benefits from ETF speculation and the Alpenglow upgrade, positioning it as a top-5 crypto by market cap.

Risks and Challenges Ahead

Despite the optimism, risks loom. Bitcoin’s valuation lacks a fundamental basis, and speculative trading by “whales” can trigger sharp corrections, as seen in the 75% drop during the 2021-2022 crypto winter. Macroeconomic factors, such as Federal Reserve rate hikes or Trump’s tariff policies, could dampen risk-on assets like Bitcoin. Regulatory missteps, particularly in Europe’s MiCA framework, also pose threats.

Retail interest remains cautious, with Google search trends for Bitcoin declining despite high prices, suggesting a disconnect between institutional and public engagement.

The Road to Mainstream Adoption

The crypto market is at a historic crossroads. With institutional inflows, regulatory clarity, and technological advancements like Bitcoin’s BitVM and decentralized finance (DeFi) integration, analysts predict Bitcoin could test $185,000–$250,000 by 2026. The Trump administration’s policies, including a potential “Truth Social Bitcoin ETF,” could further legitimize crypto, while corporate adoption by agile firms like Metaplanet signals a structural shift.

As one X post aptly stated, “If you told me in 2019… a U.S. president backing crypto, Bitcoin held as a national reserve, BTC ETF breaking records… I’d laugh.” Yet, in 2025, this is reality. While Bitcoin’s journey to £110,000 remains unconfirmed, its trajectory toward mainstream adoption is undeniable. Investors are advised to stay informed, diversify, and brace for volatility as the crypto market continues to redefine global finance.