Bitcoin has reached a new all-time high, soaring to $109,400 on May 21. This spike came shortly after a temporary trade agreement between the US and China helped alleviate economic concerns and boosted investor confidence. The recent high was reported by TradingView data, just nine days following the White House’s announcement on May 12 regarding the reduction of US-China import duties to 10% for a 90-day period.
This tariff suspension, along with a more collaborative negotiation atmosphere, reduced fears of abrupt changes in trade policy. Aurelie Barthere, a prominent research analyst, noted that this shift significantly influenced the risk tolerance of both traditional and cryptocurrency investors.
In 2025, the mutual tariffs imposed by President Donald Trump were perceived as a major threat to the stability of stock and crypto markets. Bitcoin had previously dipped to a low of $74,434 on April 7, just five days after Trump initiated these import duties on April 2, leading to a drastic market decline, during which the S&P 500 lost over $5 trillion.
However, Bitcoin began to bounce back on April 9, as the uncertainty around Trump’s policies peaked. Michaël Van De Poppe, from MNCONSULTANCY, suggested that this was a pivotal moment for market participants.
Bitcoin’s May Momentum with a “Nearby Setup”
As May began, Bitcoin’s surge was driven by a unique mix of geopolitical tensions and positive changes in regulatory and economic conditions, according to Jag Kooner, who leads derivatives at Bitfinex. He remarked that ongoing ceasefire discussions between Russia and Ukraine have lessened one of the key sources of geopolitical risk from the past two years. Kooner also mentioned that as risks fade, investors are increasingly drawn to Bitcoin and tech stocks, rather than fleeing from them.
Kooner explained that this capital movement indicates a maturation in Bitcoin’s role; it is no longer just seen as a safeguard against fear but is becoming a regular risk asset amid a stable macro environment.
In discussions about the potential for peace, Ukraine and Russia announced intentions to begin ceasefire talks. Trump commented on May 19 about his two-hour conversation with Russian President Vladimir Putin, hinting at the possibility of negotiations progressing.
Looking forward, analysts believe that for Bitcoin to rally from $114,000 to $120,000, funding rates need to remain neutral and open interest steady. Some projects that macroeconomic or regulatory changes could trigger this rise.
There are even predictions suggesting Bitcoin could surpass $130,000 by the end of 2025, citing a close relationship between Bitcoin prices and the global money supply.
With an uptick in investor demand amid a broader decline in fiat currency, there’s speculation that Bitcoin prices might rise accordingly as the year progresses.
