Bitcoin’s Wild Ride: How It Surged Past $111K While the World Holds Its Breath!

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Ah, the early hours of Thursday, May 22, when the world was still waking up, and Bitcoin decided to throw a party. It leaped more than 4% from its previous peak of $109,800, reaching a dazzling new high of $111,544. 🎉 Who knew digital coins could be so dramatic?

when one goes up, the other goes down. So, when demand plummets, prices drop faster than a hot potato, and yields rise. Bonds are usually the safe bet, but when they start acting like a moody teenager, it’s a sign that folks might be losing faith in government debt. Yikes!

The chaos didn’t stop there. The 10-year and 30-year U.S. Treasury yields climbed to 4.58% and 5.08%, respectively, while Japan’s 30-year yield jumped to a record 3.19%. It’s like a global game of “who can freak out the most?” And with long-term government debt typically seen as a safe haven, these moves are sending ripples of unease across the financial seas.

“The real concern isn’t just about U.S. debt—it’s a global issue,” analysts at The Kobeissi Letter tweeted on May 21. “Government bonds are no longer reliably playing their safe-haven role during market stress.” So, what’s a savvy investor to do? Apparently, they’re flocking to Bitcoin (BTC), which is now viewed as a hedge against inflation, fiscal instability, and currency devaluation. Because why not throw a digital coin into the mix?

What just happened?

At 1:00 PM ET, the S&P 500 fell nearly -80 points in 30 minutes without any major “news.”

What actually happened was a weak 20Y Bond Auction which sent US Treasury Yields soaring.

Investors MUST watch yields here. Let us explain.

(a thread)

— The Kobeissi Letter (@KobeissiLetter) May 21, 2025

“Bitcoin’s new high has been concocted by an array of favorable ingredients in the macro cauldron,” said Antoni Trenchev, co-founder of crypto exchange Nexo, in a commentary shared with CNBC. He cited soft U.S. inflation data, a U.S.-China trade de-escalation, and Moody’s downgrade of U.S. sovereign debt. “It’s possible a three-month window has opened for risk assets to thrive,” he added. Sounds like a magical time for Bitcoin, doesn’t it?

On-chain data backs this up. Bitcoin’s realized market cap has crossed $912 billion, marking a $27 billion capital inflow since early May. Exchange inflows have dropped 82% since November, according to CryptoQuant, suggesting fewer holders are selling. Meanwhile, Tether (USDT) balances on exchanges, seen as a proxy for crypto buying power, have hit a record $46.9 billion. It’s like a crypto party where everyone’s too busy to leave!

Bitcoin just hit a new all-time high.

Exchange inflows are down 82% since November.

USDT reserves at $46.9B—liquidity is booming.

— CryptoQuant.com (@cryptoquant_com) May 21, 2025

Institutional demand is also on the rise. Bitcoin exchange-traded funds have attracted more than $4.24 billion in inflows over the past month, according to SoSoValue data. In addition, Strategy recently added $765 million worth of BTC, bringing its total holdings to over $63 billion. That’s a lot of digital coins!

With public companies now holding 15% of all Bitcoin in circulation, and traditional safe havens under pressure, Bitcoin’s role as a macro hedge is being tested. So far, it’s holding up like a champ. Who knew a digital currency could be so resilient? 🏆

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2025-05-22 09:23