The upward trend in the cryptocurrency market remains robust.
Despite a minor 0.6% decline in overall market capitalization—now standing at $3.48 trillion—the bulk of the top 100 cryptocurrencies continue to see price increases. This rally is being driven by increasing institutional interest and positive developments in regulatory frameworks.
The total trading volume in the crypto market remains substantial at $123 billion, indicating resilience and restored confidence among investors.
Key Highlights:
The crypto market sustains its rally, even with the dip in market cap.
Bitcoin has gained 1.25% over the last 24 hours.
Market analysts are optimistic about the recovery momentum.
The environment appears set for potential new all-time highs.
Inflows from significant exchange-traded funds (ETFs) and favorable regulatory changes are underpinning the upward movement.
While the current rally appears sustainable, short-term corrections and consolidations should be anticipated.
Market Updates – May 21, 2025: Crypto Winners & Losers
In comparison to yesterday, when all top ten cryptocurrencies were in the green, one coin has taken a negative turn today. Tron (TRX) fell by 0.7%, now priced at $0.2711. Founder Justin Sun has publicly expressed his support for U.S. President Donald Trump, announcing his attendance at Trump’s Gala Dinner.
Cardano (ADA) emerges as the best performer of the day, showing a 3% increase and currently trading at $0.7539. Ethereum (ETH) also gained 0.8%, now shifting at $2,553, with a daily high reaching $2,635.
Bitcoin (BTC) briefly hit a peak of $107,831 before settling back to around $106,500, reflecting a 1.4% rise over the past day and stabilizing at yesterday’s high of $106,533.
Among the top 100 cryptocurrencies, the major upward movement was seen in Stacks (STX), which increased by 7.1%, reaching $0.9106. In contrast, Story (IP) faced the biggest decline, dropping 3.7% to $4.49.
The ongoing crypto market rally is attributed to growing institutional adoption, significant ETF inflows, regulatory advancements, and favorable macroeconomic conditions, which collectively have fostered a risk-on sentiment among investors.
Currently, the regulatory landscape appears advantageous for cryptocurrencies, particularly in the United States. The Senate has recently voted to advance the GENIUS Act, aimed at federal oversight of stablecoins.
The Senate advanced the GENIUS Act with a bipartisan vote of 66-32 on Monday, marking a pivotal stride toward establishing federal regulation for stablecoins and digital currencies. #GENIUSAct #Stablecoins https://t.co/JmoPuWjKdf
— Finance Newso.com (@Finance Newso) May 20, 2025
On May 20, U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins faced inquiries from lawmakers concerning the agency’s management of fraud allegations against Tron founder Justin Sun, as well as issues related to a meme coin linked to Donald Trump. The implications of these inquiries on the market remain uncertain.
Chairman Paul Atkins is slated to testify before the House Appropriations Subcommittee on Financial Services and General Government today at 10 a.m. ET.
A live stream will be available: https://t.co/QDPSVDHlCR
— U.S. Securities and Exchange Commission (@SECGov) May 20, 2025
‘Preparing for New All-Time Highs’
A recent report from Glassnode highlights that Bitcoin has achieved a local peak of $107,000, nearing its all-time high of $109,000. This has resulted in a considerable uptick in capital inflows, pushing the Realized Cap above $900 billion—a significant milestone.
Historically, only four trading days have surpassed this daily closing price. The last weekly close at $106,500 was unprecedented and represents a 40% increase over the past six weeks, signaling the strength of the market recovery.
Source: Glassnode
Ruslan Lienkha, head of markets at the crypto platform YouHodler, commented on the potential consolidation phase for Bitcoin, characterized by accumulation. He believes current price actions may serve to “set the stage for another upward cycle leading to a new all-time high.”
He highlighted the $90,000–$110,000 range as crucial, given the substantial trading activity observed since November. “This indicates a strong support level, reinforcing the framework for Bitcoin’s price trajectory,” he remarked, emphasizing the risk of a downside correction but noting its likelihood as low in the near-to-medium term.
Although it may be premature to declare the onset of a full-blown alt season, Ethereum’s notable performance is attributable to internal developments, including the Pectra upgrade and the proliferation of stablecoins on its network, enhanced by a favorable macroeconomic backdrop.
Key Levels & Upcoming Events
After two previous unsuccessful attempts, Bitcoin has finally crossed the $106,000 level, climbing above $106,500, and at the time of reporting, is holding firm. This ability to maintain recent highs reflects a dynamic push-and-pull characteristic within the market.
Although it faltered at a high of $107,800, if Bitcoin can establish itself above $107,000, the next target will be $108,786, after which the cryptocurrency could approach fresh all-time highs.
According to Glassnode, the $2,400–$2,900 range is significant for Ethereum, acting as both a resistance zone and a potential breakout level critical for sustaining upward momentum.
Source: Glassnode
The Fear and Greed Index has reported a slight uptick from 68 to 69, indicating deeper investor confidence tinged with expectations of high risk. This reflects the growing optimism in the market, potentially leading to overconfidence and overvaluation, which often precedes corrections.
The market rally is further supported by strong investor demand and inflows into exchange-traded funds (ETFs).
On May 20, spot Bitcoin ETFs recorded a net inflow of $329.02 million, marking the fifth consecutive day of increases, with cumulative inflows reaching $42.77 billion. Spot Ethereum ETFs also saw $64.89 million in net inflows, resulting in a total of $2.59 billion in cumulative inflows over three days.
Additionally, major alternative asset manager Blackstone has made a foray into crypto by investing in BlackRock’s iShares Bitcoin Trust (IBIT). A recent filing reveals that Blackstone acquired 23,094 shares of IBIT, alongside nearly 10,000 shares of ProShares Bitcoin ETF (BITO) and 4,300 shares of Bitcoin Depot Inc. (BTM).
According to a recent portfolio filing, Blackstone’s Alternative Multi-Strategy Fund disclosed holding 23,094 shares of the iShares Bitcoin Trust (IBIT) as of March 31. This represents the first publicly reported bitcoin-related position by Blackstone. https://t.co/EVhkd04vnw
— Wu Blockchain (@WuBlockchain) May 20, 2025
Frequently Asked Questions
Why has crypto moved independently of stocks today?
Despite the ongoing bullish momentum in the crypto space, stock markets experienced declines largely due to rising Treasury yields, thereby breaking a six-session winning streak. The S&P 500 fell by 0.39%, the Nasdaq-100 decreased by 0.37%, and the Dow Jones Industrial Average declined by 0.27%. Amid concerns regarding inflation and impending interest rate hikes, investors are seeking alternative refuge. Additionally, stocks came under pressure from active discussions surrounding a tax-cut bill proposed by Trump that could significantly increase government debt.
Is this rally sustainable?
Current indicators suggest the rally is well-founded, bolstered by strong fundamentals including institutional demand and favorable regulatory developments, accompanied by supportive macroeconomic trends. However, potential regulatory changes and growing investor greed could lead to brief corrections. Alternatively, the market may be entering a period of consolidation.
The post Why Is Crypto Up Today? – May 21, 2025 appeared first on Finance Newso.
