Why Bitcoin keeps breaking new highs

Bitcoin is in a new price discovery phase after breaking through the $109,500 mark on Wednesday.

Moreover, this rally has lifted the total value of cryptocurrencies to $3.6 trillion.

Nonetheless, this remains below the peak of $3.9 trillion reached in mid-December, largely due to the underperformance of altcoins.

A more favorable macroeconomic environment—such as the U.S. re-engaging on the global stage—is also supporting Bitcoin’s bullish trend by instilling greater confidence among investors.

Bitcoin crossed the $100,000 mark for the first time since February on May 8, following a historic settlement deal with the United Kingdom. This agreement marked a turning point in Trump’s trade war. The economic outlook brightened significantly with a 90-day freeze on tariffs imposed by the U.S. and China.

The digital currency reached its highest level ever—$109,000—just hours before Donald Trump was inaugurated as President of the United States. One of the Republican campaign’s pro-crypto pledges for a second term was the creation of a strategic national Bitcoin reserve, which has now been implemented.

Crypto derivatives exchanges have recorded unprecedented levels of open interest (OI) in Bitcoin futures, as traders anticipate further price increases.

According to CoinGlass, open interest in Bitcoin futures peaked at just over $80 billion on May 23. In response to rising prices, derivatives speculators have increased their leverage by 30% since the beginning of May.

Open interest refers to the total number of outstanding futures contracts that have not been settled. It serves as a gauge of current market speculation.

Widespread bipartisan support in the U.S. for stablecoin regulation—and digital assets deemed safer than more speculative tokens—is giving the cryptocurrency sector a lift. The momentum also reflects Trump’s renewed focus on the importance of the crypto industry.

President Trump signed an executive order declaring, “The policy of my Administration [is] to support the responsible growth and use of digital assets across all sectors of the economy.” He also pledged to be the first “crypto president” during his campaign. The first-ever “crypto summit,” hosted by the President, brought together prominent CEOs, founders, and investors from the industry.

Over $2 billion has flowed into U.S. spot Bitcoin ETFs in just six days. Companies continuing to acquire Bitcoin for their treasuries include the Japanese investment firm Metaplanet and Michael Saylor’s Strategy.

Strategy has purchased 324,000 BTC over the past eight months—105,000 more Bitcoins than all other publicly listed companies combined.

With Bitcoin’s new all-time high, Strategy’s unrealized profit surged by approximately $24 billion. According to the Saylor Tracker, the company’s Bitcoin holdings are now valued at around $64 billion.

However, Friday’s price action suggests the retail market remains subdued. Social sentiment is shifting, with increased searches for bear market lows, growing inflation concerns, and mounting macroeconomic uncertainty.

However, Friday’s price action suggests the retail market remains subdued. Social sentiment is shifting, with increased searches for bear market lows, growing inflation concerns, and mounting macroeconomic uncertainty.

Bitcoin Pizza Day, observed on May 22, commemorates the first time Bitcoin was used to purchase a physical good.

Fifteen years ago, programmer Laszlo Hanyecz paid 10,000 Bitcoins for two Papa John’s pizzas. At the time, Bitcoin was worth only $0.0041, making the total cost about $40.

Today, those pizzas would be worth approximately $11 billion—a landmark moment that underscores Bitcoin’s dramatic rise in value and cultural impact.