The cryptocurrency market is experiencing a significant upward trend, with all top 10 cryptocurrencies and the majority of the top 100 coins by market capitalization witnessing price increases over the past 24 hours. This surge is attributed to a combination of favorable movements in exchange-traded funds (ETFs) and regulatory progress, especially regarding stablecoins. As a result, the total market capitalization has grown by 1.1%, reaching $3.61 trillion, while trading volumes have surged to $198 billion, marking the highest activity in recent weeks.
Key Highlights:
- The ongoing crypto market rally positions Bitcoin at new all-time highs;
- Investor confidence is on the rise, enhancing spending and profitability;
- The potential for continued rally is evident;
- Any pullbacks are suggested to be entry points rather than indications of a market reversal;
- Spot Bitcoin ETFs have recorded a net inflow of $608.99 million;
- The sustainability of the rally persists, despite the likelihood of short-term corrections.
Market Performance Overview
In a remarkable performance, all top 10 cryptocurrencies have posted gains within the last day. Cardano (ADA) leads the pack, having increased by 3.6% to reach $0.7876 for the second consecutive day.
Following closely is Bitcoin (BTC), which has seen a rise of 3.4% and is currently priced at $111,187. This dominant cryptocurrency has been pushing toward new all-time highs, recently touching a peak of $111,544.
Ethereum (ETH) has also shown progress, appreciating by 0.9% to $2,623, with a daily high recorded at $2,631, consistent with the prior day’s metrics.
Among the top 100 cryptocurrencies, only seven have faced declines, with losses ranging from 0.6% for Maker (MKR) to 3.4% for Aave (AAVE), trading at $1,762 and $252, respectively.
The driving forces behind this rally remain unchanged. A significant increase in ETF inflows, coupled with favorable regulatory developments, has contributed to this positive momentum, further supported by improved trade relations between the US and China and a recent credit downgrade of US sovereign debt by Moody’s, leading to a redirection of risk capital into cryptocurrencies.
Encouraging signs of clearer regulations are emerging within the sector, as the US Senate has voted to advance the GENIUS Act. Sarah Milby, the Interim CEO and Head of Policy at the Blockchain Association, termed the move a “meaningful step toward establishing clear, common sense rules for stablecoins.”
2/ With this vote, Congress has signaled that the United States is serious about leading the future of digital finance – where trust, innovation, and dollar dominance intersect.
— Blockchain Association (@BlockchainAssn) May 20, 2025
Bitwise CEO Matt Hougan has stated that this legislation could legitimize stablecoin usage, potentially expanding its market from $236 billion to $2.5 trillion.
Meanwhile, in Hong Kong, the Legislative Council has passed the Stablecoin Bill to regulate stablecoin issuance. Politician Johnny Ng remarked, “We welcome global enterprises and institutions interested in issuing stablecoins to apply,” emphasizing that these stablecoins will be backed by fiat currency.
今天是全球Web3發展的里程碑，也是香港成為國際Web3中心的重要一步。很榮幸和大家分享今天香港特別行政區立法會已經三讀通過<穩定幣條例草案>，相信在今年底前各大機構可以在香港向金融管理局申請成為合規穩定幣發行商。香港穩定幣是以法定貨幣為底層資產，我們歡迎全球有意發行穩定幣的企業和機構來港… pic.twitter.com/dVJ4NnnhWA
— Johnny Ng 吴杰庄 (@Johnny_nkc) May 21, 2025
Bitcoin’s New All-Time Highs
A recent report from Glassnode indicates that Bitcoin’s robust price action over recent days has enhanced investor portfolios, prompting many to de-risk and secure profits. The proportion of Short-Term Holders realizing gains has surged by over 7% in the past month, marking one of the most significant profitability increases in this cohort’s history. This new peak will likely further fuel the market’s momentum.
All investor groups have reported improved financial positions, likely fostering higher confidence and spending. Glassnode comments that as market conditions grow more favorable, many investors are capitalizing on profit-taking opportunities.
According to analysts at the crypto exchange Bitfinex, Bitcoin has successfully crossed new all-time highs, ascending past $109,500 “with conviction and volume.” Initial price movements were driven by short liquidations, but the rally from $75,000 has been largely propelled by strong fundamental demand alongside ETF inflows, set against a favorable macroeconomic backdrop.
These analysts note that geopolitical de-escalations (such as developments in the Russia-Ukraine situation), along with dovish signals from global central banks and easing inflation, have created an ideal environment for Bitcoin to flourish as a macro asset.
In addition, steady funding rates, positive cumulative volume delta (CVD) reflecting robust spot-driven flows, and consistent ETF inflows—especially during US trading hours—suggest a promising outlook. This rally is characterized by structural demand rather than leverage, creating an opportunity for further growth in the space.
Monitoring Key Levels and Events
After a brief test of historical resistance levels, Bitcoin has surged past significant markers of $109,900, $110,000, and $111,100. While the sustainability of this ascent remains to be examined, the cryptocurrency has made substantial progress regardless of anticipated pullbacks.
Bitfinex analysts indicate that the next price targets to monitor are between $114,000–$118,000 due to minor liquidity levels, followed by a critical range of $123,000–$125,000, where large options open interest is accumulating.
As long as ETF inflows maintain momentum and macroeconomic factors don’t disrupt progress, this rally has the potential to extend further. Analysts advise viewing pullbacks as opportunities for new entries rather than indications of a reversal.
The recent surge has pushed the Fear and Greed Index from 69 to 73, signifying heightened investor enthusiasm and a willingness to embrace risk.
Moreover, as of May 22, spot Bitcoin ETFs recorded a net inflow of $608.99 million, marking the sixth day of consecutive inflows and culminating in a total of $43.38 billion. Spot Ethereum ETFs have also recorded inflows of $587,130 over the past four days, totaling $2.59 billion.
Amidst the market rally, decentralized trading platform Hyperliquid has seen open interest rise to an unprecedented $8.9 billion. Out of the $19.15 billion in trading volume accrued during the past day, Bitcoin accounted for $11.5 billion, Ethereum for $4.03 billion, and Solana for $1.2 billion.
Hyperliquid hit multiple all-time highs today, including:
+ Open interest: $8.9B
+ 24h fees: $5.4M
+ USDC TVL: $3.2B
Onchain, transparent markets are the future. pic.twitter.com/DBUWZZEkgk
— Hyperliquid (@HyperliquidX) May 22, 2025
However, some critics are raising concerns regarding a potential political controversy. US President Donald Trump is hosting prominent investors in the TRUMP meme coin at a gala in Washington, DC, leading to ethical questions regarding foreign influences potentially swaying presidential favor. Observers suggest this event could also impact market sentiments, making it a point of interest for crypto stakeholders.
Honored to support @POTUS and grateful for the invitation from @GetTrumpMemes to attend President Trump’s Gala Dinner as his TOP fan!
As the top holder of $TRUMP, I’m excited to connect with everyone, talk crypto, and discuss the future of our industry. https://t.co/FYb39LTwDz
— H.E. Justin Sun (@justinsuntron) May 20, 2025
Frequently Asked Questions
Why did crypto experience growth while stocks declined today?
The crypto market continues to thrive even as the stock market faces challenges, with notable declines in the S&P 500 (down 1.61%), Nasdaq-100 (down 1.34%), and the Dow Jones Industrial Average (down 1.91%). Concerns over rising Treasury yields, inflation, and interest rate hikes are driving investors towards assets like cryptocurrencies and gold. Additionally, Trump’s proposed tax-cut bill risks adding $3 to $5 trillion to the national debt.
Is the current crypto rally sustainable?
While the rally shows resilience bolstered by institutional demand and macroeconomic support, it is likely to face some pullbacks. However, the prevailing level of investor greed may lead to short-term corrections.
The post Why Is Crypto Up Today? – May 22, 2025 appeared first on Finance Newso.
