The rally remains strong. All top 10 coins and nearly all 100 coins per market cap are still green, some recording double-digit increases. Per analysts, the main drivers are spot demand, growing institutional participation, and a more productive regulatory stance. At the same time, the cryptocurrency market capitalization has decreased by 1.7% to $3.63 trillion. The total crypto trading volume is at $153 billion.
TLDR:
BTC trades sideways but may be preparing to test new highs;
The rally is driven almost entirely by spot demand;
Bitcoin showcases strong fundamentals, defying strong geopolitical and other forces;
New ATHs are the ‘beginning of a new era for the original cryptocurrency’;
Spot Bitcoin ETFs see a net inflow of $934.74 million;
Crypto market rally remains sustainable.
Crypto Winners & Losers
At the time of writing, nearly all top 10 coins per market capitalization have appreciated over the past day. Bitcoin (BTC) is the only coin at the moment with an unchanged price, trading at $110,594. Compared to the all-time high of $111,814, which it hit yesterday, BTC is now down by 1.1%.
Ethereum (ETH) appreciated 1.9%, now changing hands at $2,666. Its daily high is $2,720.
The category’s best performer, for the third day in a row, is Cardano (ADA). It’s up 3.3% to $0.8145.
Of the top 100 coins, seven are red today. Sui (SUI) decreased the most: 5.1% to the price of $3.85. On the other hand, Worldcoin (WLD) is the category’s best performer, having appreciated 22.7% to $1.56.
On 21 May, World Foundation announced that it raised $135 million from Andreessen Horowitz and Bain Capital Crypto. It also noted that World now has more than 26 million users across 160 countries, while 12.5 million people have an Orb-verified World ID. Furthermore, Apple designer Jony Ive teamed up with World co-founder Sam Altman at OpenAI.
Meanwhile, Gadi Chait, Head of Investment at Xapo Bank, commented that, despite a backdrop of historic geopolitical uncertainty, Bitcoin’s latest rally is driven “almost entirely by spot demand.”
It’s further supported by “the first meaningful alignment of policy tailwinds in years—a bipartisan push around FIT21 in Washington, HM Treasury’s near-final UK framework, a 90-day US–China tariff pause and softer US inflation data—all of which have restored breathing space for allocators.”
Finally, institutional uptake shows that digital assets have moved from speculative niche to integral portfolio tool, Chait says.
‘Beginning of a New Era for the Original Cryptocurrency’
Seamus Rocca, CEO of Xapo Bank, argues that BTC’s latest ATH is “no surprise to those who understand its long-term fundamentals.” The momentum showcases the assets’ growing maturity, institutional participation, a more constructive regulatory outlook, and greater understanding of the asset among governments.
“But importantly, it is not Bitcoin’s defining moment; it is one of many to come.”
Rocca stresses that we are still in the early stages of Bitcoin’s broader adoption. The asset is highly resilient. It has the ability to deliver consistent upward performance despite cycles of macro uncertainty and volatility in traditional markets, he says.
“Events that once might have sparked fear and uncertainty, like the recent Coinbase cyber-attack or Moody’s downgrade of the US credit rating, have been absorbed by the market with little disruption. These moments alone signal how far Bitcoin has matured,” Rocca writes. It is “steadily cementing its role as a cornerstone of the future financial system.”
Moreover, James Toledano, Chief Operating Officer at Unity Wallet, notes that there may be a ‘feel good’ factor at play now as “investor confidence returns and the appetite for riskier assets is back on.” Some of the capital flying away from US equities may have “found a new home in Bitcoin.”
Finally, Dom Harz, co-founder of hybrid Layer-2 chain BOB, emphasizes Bitcoin’s untapped technological potential, particularly in DeFi. Bitcoin DeFi TVL has more than doubled in just over a month, tracking the price trajectory. Per DeFiLlama, it now stands at $6.811 billion.
Source: DeFiLlama
Moreover, he says that BTC’s ATH is more than a price milestone. Rather, it’s “the beginning of a new era for the original cryptocurrency.” Price speculations are possible, but precise predictions are not. “What we can say with certainty is that Bitcoin is maturing and entering a phase defined by institutional adoption, clearer regulation, and, critically, rapid technological progress,” Harz says. “We’re seeing mainstream adoption and technical innovation on a collision course — and the result will reshape the crypto landscape.”
Levels & Events to Watch Next
After hitting a local high of $111,807, BTC saw a pullback to $110,594. Overall, it’s mostly been trading between $110,400 and $111,300. Key resistance levels are $112,000, followed by a strong psychological level of $115,000 – $120,000, after which the next breakthrough would be $125,000. Support levels to keep an eye on are $107,000, then $100,000, and the critical level of $95,000.
Unity Wallet’s Toledano, argues that while Bitcoin’s “integration into diverse portfolios, from state retirement systems to sovereign wealth funds, reflects its growing legitimacy, caution is always warranted.” Its inherent volatility remains a significant concern. Its price is susceptible to rapid fluctuations due to market sentiment, regulatory changes, and macroeconomic shifts, he says.
Meanwhile, the Fear and Greed Index has made another jump deeper into the green zone, from 73 to 76 in a day, signaling high confidence and willingness to take risks.
Source: CoinMarketCap
Moreover, in a seventh consecutive day of inflows, spot Bitcoin ETFs have seen a net inflow of a whopping $934.74 million. Spot Ethereum ETFs recorded $110.54 in net inflows, for a fifth day of positive flows.
Potential Positive and Negative Effects
Meanwhile, there have been quite a few positive news stories over the past day across the world, with the crypto market benefiting. For example, on the regulatory side, the US CFTC outgoing commissioner Summer Mersinger suggested that the agency would approve crypto perpetual futures “very soon.” She also said that its incoming chairman “has a great voice for the crypto industry.”
Also, two US Congressmen reintroduced the Blockchain Regulatory Certainty Act (BRCA) to prevent crypto service providers from being classified as money transmitters.
On the adoption side, some of the largest US banks, including JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are reportedly exploring a potential partnership to issue a shared stablecoin.
However, there are some potentially negative news. The US Securities and Exchange Commission (SEC) delayed its decision on the Solana ETF proposals from Bitwise and 21Shares until June. Extensions may signal to investors skepticism and an unfavorable view of the industry. They’re also affecting product schedules.
Moreover, an even more pressing issue is US President Donald Trump’s direct involvement in and promotion of his TRUMP meme coin, rewarding its top investors. Critics are warning that this enables anonymous investors to buy access to the president. Senator Chris Murphy said Trump’s dinner for top investors was “essentially opening a channel for bribery.”
Also, Ranking Member of the House Financial Services Committee Maxine Waters introduced a new bill targeting corruption in the crypto sector. It would prohibit elected officials from owning “a proportion of a digital asset that would allow the individual to unilaterally make changes to the digital asset.”
These Trump’s moves may have a negative cascading effect on the crypto market, so participants should keep a critical eye on it.
Quick FAQ
Why did crypto move against stocks today?
The crypto market continues its rally, but the stock market is seeing a mixed performance, mostly falling or going flat. The S&P 500 is down 0.044%, the Nasdaq-100 is up 0.15%, and the Dow Jones Industrial Average saw a smaller decrease of 0.0032%. As factors, analysts are primarily noting US Treasury yields declining from recent highs following the passage of the tax and spending bill in that country.
Is this rally sustainable?
The rally is going strong for now, upheld by the ETF inflow surges and generally favorable regulatory developments. Both of these factors can quickly shift, though. Yet analysts expect to see only short-term corrections for now.
The post Why Is Crypto Up Today? – May 23, 2025 appeared first on Cryptonews.
