The cryptocurrency market is currently in the midst of a robust rally, with all of the leading top ten coins maintaining positive momentum. Most of the top 100 coins are also in the green, some experiencing significant double-digit gains. Analysts attribute this rally to several key factors, including spot demand, increased institutional involvement, and a more favorable regulatory environment. However, it’s worth noting that the overall cryptocurrency market capitalization has seen a slight decline of 1.7%, settling at $3.63 trillion, with total trading volumes at approximately $153 billion.
Among the highlights:
Bitcoin is trading relatively flat but may be on the verge of achieving new highs.
The ongoing rally is predominantly fueled by spot demand.
Bitcoin is demonstrating solid fundamentals, managing to defy various geopolitical and economic challenges.
New all-time highs (ATH) could symbolize the onset of a transformative era for the cryptocurrency.
Spot Bitcoin ETFs have experienced a notable net inflow of $934.74 million.
The rally within the crypto market appears to be sustainable.
Crypto Winners & Losers
As of the latest reports, nearly all top ten cryptocurrencies by market capitalization have recorded gains in the past 24 hours. Bitcoin (BTC) remains unchanged at $110,594, reflecting a 1.1% decline from its recent all-time high of $111,814 reached yesterday.
Ethereum (ETH) has increased by 1.9% and is currently priced at $2,666, with its daily peak hitting $2,720.
Leading the day’s performance for the third consecutive day is Cardano (ADA), which has surged 3.3% to reach $0.8145.
Among the top 100 cryptocurrencies, seven are showing losses today, with Sui (SUI) experiencing the largest drop at 5.1%, now priced at $3.85. Conversely, Worldcoin (WLD) stands out by posting a phenomenal gain of 22.7%, now valued at $1.56.
On May 21, the World Foundation announced a substantial fundraising achievement of $135 million, supported by Andreessen Horowitz and Bain Capital Crypto. The foundation also reported that there are now over 26 million users globally across 160 nations, with 12.5 million having an Orb-verified World ID. Notably, renowned Apple designer Jony Ive has partnered with World co-founder Sam Altman of OpenAI.
Sam & Jony introduce io pic.twitter.com/ej5K59kJq3
— OpenAI (@OpenAI) May 21, 2025
Amid this turbulent landscape, Gadi Chait, Head of Investment at Xapo Bank, highlighted that Bitcoin’s latest rally is largely driven by spot demand amidst ongoing geopolitical uncertainties.
Chait noted that a significant alignment of policy support has emerged after years of unclear regulation. This includes bipartisan efforts surrounding FIT21 in Washington, the nearing finalization of the UK’s regulatory framework by HM Treasury, a temporary pause on US-China tariffs, and more favorable inflation indicators in the US—factors that have created a conducive environment for investors.
Moreover, he remarks that institutional interest indicates that digital assets are evolving from speculative assets to essential components of diversified portfolios.
‘Beginning of a New Era for the Original Cryptocurrency’
Seamus Rocca, CEO of Xapo Bank, contends that Bitcoin’s recent achievement of new all-time highs comes as little surprise for those well-versed in its long-term fundamentals. The momentum reflects the asset’s increased maturity, with significant institutional engagement, an improved regulatory outlook, and a deeper understanding of cryptocurrency by government bodies.
“This moment is not Bitcoin’s defining moment; it is merely one of many to come,” Rocca stated.
He emphasizes that Bitcoin is still in the early stages of widespread acceptance, exhibiting a remarkable resilience that allows it to yield consistent growth even in the face of macroeconomic volatility.
Rocca pointed out that events that previously instigated market fears, such as the recent cyber-attack on Coinbase or Moody’s downgrade of the US’s credit rating, have been absorbed with minimal disruption, indicating the maturation of Bitcoin. He believes it is fortifying its position as a fundamental element of the future financial ecosystem.
Crypto Heatmap Today
BTC holds strong at $111K, ETH climbs near $2.7K, and SOL gains momentum!
Market showing green strength!
⸻#CryptoHeatmap #BTC #ETH #SOL #CryptoUpdate #MarketTrends #BitcoinNews #Altcoins #BullishMomentum #CoinMarketCap
https://t.co/cihyZccn9h pic.twitter.com/vkV3kdiwXx
— Angelo Jasmine (@Angelojazs) May 23, 2025
Moreover, James Toledano, COO at Unity Wallet, remarked on a potential resurgence of positive sentiment among investors, suggesting that confidence is returning and interest in riskier assets is on the rise. Some capital that previously flowed out of US equities may now be directed toward Bitcoin.
Dom Harz, co-founder of the hybrid Layer-2 chain BOB, pointed out that Bitcoin possesses significant technological potential yet to be realized, especially in the realm of decentralized finance (DeFi). Total value locked (TVL) in Bitcoin DeFi has surged more than twofold in the past month, now resting at $6.811 billion according to DeFiLlama.
Harz further emphasized that Bitcoin’s recent ATH signifies more than just a price milestone; it marks “the beginning of a new era for the original cryptocurrency.” Although speculation about price changes is common, definitive predictions remain elusive. “What remains certain is Bitcoin’s advancement into a stage defined by institutional acceptance, clearer regulations, and critically, rapid technological advancement,” he stated. He predicts that mainstream adoption and innovative technologies are on a collision course, reshaping the future of the cryptocurrency landscape.
Levels & Events to Watch Next
Bitcoin hit a local high of $111,807 before pulling back to $110,594. The cryptocurrency has primarily been trading within a range of $110,400 to $111,300. Key resistance levels to monitor include $112,000 and a significant psychological threshold of $115,000 to $120,000, after which a further breakthrough could target $125,000. Support levels to watch are $107,000, $100,000, and the critical point at $95,000.
Toledano of Unity Wallet warns that while Bitcoin’s integration into diverse investment portfolios—ranging from state retirement systems to sovereign wealth funds—reflects its growing legitimacy, investors should exercise caution. The asset’s inherent volatility continues to pose significant risk, as its price can rapidly fluctuate in response to market sentiment, regulatory changes, and macroeconomic events.
In a related indicator, the Fear and Greed Index has leaped deeper into the green territory, rising from 73 to 76 within a day, indicating heightened confidence and a willingness to embrace risk.
Source: CoinMarketCap
Additionally, for the seventh consecutive day, spot Bitcoin ETFs have registered a net inflow of an impressive $934.74 million. Spot Ethereum ETFs also reported a modest $110.54 million in net inflow, marking five consecutive days of positive movement.
Potential Positive and Negative Effects
Positive developments have emerged recently, contributing to the favorable conditions for the crypto market. On a regulatory note, Summer Mersinger, an outgoing commissioner of the US CFTC, indicated that the agency might soon approve crypto perpetual futures. She expressed confidence in the agency’s incoming chair’s supportive stance towards the crypto sector.
Furthermore, US Congress members have reintroduced the Blockchain Regulatory Certainty Act (BRCA), which aims to reclassify crypto service providers to prevent them from being categorized as money transmitters.
Tom Emmer and Ritchie Torres have reintroduced key legislation that would prevent crypto developers from being classified as money transmitters.#RitchieTorres #TomEmmerhttps://t.co/tvHdoVU1g
— Finance Newso.com (@Finance Newso) May 22, 2025
In terms of adoption, several major US banks, such as JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo, are reportedly exploring partnerships to issue a joint stablecoin.
However, some developments might raise concerns. The SEC has postponed its decisions on the Solana ETF proposals from Bitwise and 21Shares until June. Such delays can be interpreted as skepticism toward the industry, potentially influencing investor sentiment negatively and disrupting product launches.
Moreover, an emerging controversy involves US President Donald Trump’s promotion of his TRUMP meme coin, which rewards top investors. Critics express concern that this move enables privileged investors to gain access to the presidency. Senator Chris Murphy described Trump’s engagement with leading investors as “effectively opening a channel for bribery.”
Democrats should stand together and use our power to fix the GENIUS Act before the vote tomorrow. There is no excuse to facilitate Trump’s crypto corruption. pic.twitter.com/hZ3dplcZAc
— Elizabeth Warren (@SenWarren) May 8, 2025
In addition, Maxine Waters, the Ranking Member of the House Financial Services Committee, has proposed legislation aimed at preventing corruption in the crypto sector. The bill would prohibit elected officials from holding a stake in digital assets that would enable them to make unilateral changes to such assets.
BREAKING
RM @RepMaxineWaters & Cmte Democrats introduce H.R. 3573, the “Stop Trading, Retention, and Unfair Market Payoffs in Crypto Act of 2025,” landmark legislation that will put an end to Trump’s crypto corruption & protect America’s investors. | https://t.co/sHZfMZYx0A pic.twitter.com/ZbKK9hxhE3
— House Committee on Financial Services – Democrats (@USHouseFSC) May 22, 2025
These controversies surrounding Trump could cast a shadow over the crypto market, warranting close attention from all participants.
Quick FAQ
Why did crypto move against stocks today?
The cryptocurrency market continues to experience a sustained rally, while the stock market is seeing mixed outcomes, with most indices either declining or holding steady. The S&P 500 has decreased by 0.044%, the Nasdaq-100 has risen by 0.15%, and the Dow Jones Industrial Average has only slightly fallen by 0.0032%. Analysts attribute this divergence primarily to the decline in US Treasury yields from previous highs, following the recent tax and spending legislation in the country.
Is this rally sustainable?
The current rally appears robust, supported by strong inflows into ETFs and generally favorable regulatory announcements. However, both factors can shift quickly. Analysts suggest that short-term corrections might occur, but overall momentum seems positive for now.
The post Why Is Crypto Up Today? – May 23, 2025 appeared first on Finance Newso.
