Bitcoin rallies to $111K with ‘weeks of upside’ ahead; WLD leads weekly gains

Bitcoin surged to a new all-time high of $111,807 on May 22, capping off a week of strong gains. The total cryptocurrency market capitalisation climbed to a four-month high of approximately $3.6 trillion, reflecting a 6.5% weekly gain. Meanwhile, sentiment indicators strengthened, with the Crypto Fear & Greed Index rising seven points to 78, entering ‘extreme greed’ territory for the first time since January. Altcoins, however, saw only modest gains over the past week, with just a handful of the top 99 registering notable increases by late Asian trading hours on Friday. Why did Bitcoin rise so much? Bitcoin’s latest rally came amid a surge in institutional demand, growing optimism around U.S. crypto regulation, and a well-timed dose of symbolic celebration. On May 22 — also known as Bitcoin Pizza Day — the flagship cryptocurrency not only marked its cultural roots but also touched a record high of $111,861, before slightly retracing. The significance of the date, which commemorates the first real-world BTC transaction in 2010, likely helped amplify bullish sentiment across crypto communities. Fueling this momentum, a steady flow of capital into U.S.-listed Bitcoin ETFs has further cemented institutional conviction. More than $2.5 billion in spot Bitcoin ETF inflows have been recorded over just the past four trading sessions. At the same time, major firms such as MicroStrategy have continued to accumulate Bitcoin as a core treasury asset, reinforcing its narrative as a long-term store of value and adding another layer of demand pressure to the market. The broader backdrop also worked in Bitcoin’s favour. A key stablecoin bill dubbed the GENIUS Act progressed in the U.S. Senate on May 20, reviving hopes for a clearer regulatory framework under a potentially pro-crypto Trump administration. Trading activity surged alongside sentiment. Open interest across Bitcoin derivatives hit a new record above 722,000 BTC, or roughly $80.5 billion in notional value. Notably, Bitcoin’s gains came despite a broader decline in U.S. equities, signalling a pivot from its usual correlation with the Nasdaq. It adds weight to the fact that Bitcoin may be stepping out of Wall Street’s shadow and carving its own narrative. However, Bitcoin, along with most altcoins, saw a modest pullback on Friday, falling to around $107,300. While this retracement erased a portion of the week’s gains, it follows a familiar pattern seen in previous bull cycles and doesn’t appear to signal a broader trend reversal. Market jitters were sparked in part by renewed U.S.-EU trade tensions, after President Trump threatened a 50% tariff on European imports. However, analysts see this more as a hardline negotiating tactic than a policy certainty, referring to past interactions with China. What’s next for Bitcoin? While the broader narrative remains bullish, analysts are watching for signs of overheating as Bitcoin hovers near record territory. The Crypto Fear & Greed Index at 78 signals “extreme greed,” a level that in past cycles preceded short-term corrections. At the same time, Bitcoin’s Relative Strength Index was flashing overbought conditions on both the 12-hour and daily charts, sitting at 71 and 75, respectively, a potential warning that the market may need to cool off before resuming its climb. Still, on-chain data suggests the current uptrend remains fundamentally strong. According to CryptoQuant’s Ibrahim Cosar, “Buy orders have become dominant again,” with the 90-day cumulative volume delta favouring buyers since May. This buyer-led pressure contrasts sharply with the sell-side dominance seen earlier in the year and could, he notes, be “setting the stage for another wave of upward movement.” Profit-taking activity also remains subdued despite Bitcoin trading over 10% higher than when it first crossed $100,000. Glassnode data on Friday showed that “older coins were much less active this time,” which provides some assurance that long-term holders are choosing to sit tight rather than cash out. The short-term holder Spent Output Profit Ratio (STH SOPR), which tracks whether recent buyers are selling at a profit, was sitting at 1.02 at the time of writing, further confirming that the rally isn’t being driven by short-term speculation. Adding to the bullish sentiment, CryptoQuant analyst Crypto Dan pointed to Bitcoin’s funding rates, which have risen but remain below peak levels seen during previous overheated rallies. “Futures market overheating is negligible,” CryptoQuant analyst Crypto Dan explained, adding that overall, the market “is still in a healthy upward phase.” Another encouraging signal comes from Bitcoin’s MVRV Z-score, which compares market value to realized value. At 2.8, the metric remains well below the red zone that historically marks market tops. Well-followed analyst Rekt Capital also agreed that Bitcoin’s current rally has yet to lose steam, suggesting in a May 23 X post that it has “only just begun its Price Discovery Uptrend 2.” While short-term fluctuations are expected, he believes there are “still many weeks of upside ahead,” with any dips likely to be part of a broader trend that points toward continued “Macro Upside.” Cycle-end targets for Bitcoin among analysts range from $150,000 to over $200,000 . For example, pseudonymous analyst BitBull believes the move beyond $200,000 will be “real and quick,” following a breakout above $111,000. BitBull @AkaBull_ · Follow #BTC Bullish continuation $111k to $222k will be real and QUICK Invalidated point below 100k. 4:27 PM · May 23, 2025 265 Reply Copy link Read 83 replies Fellow trader Poseidon’s analysis supported the narrative as they flagged minimal resistance above current levels on the BTC/USDT daily chart. When writing, Bitcoin was priced at $109,297, up 5.5% in the past 7 days. Altcoin market recap Over the past 7 days, the altcoin market cap jumped by 6.67%, reaching about $1.44 trillion at the time of writing. Even with that rise, the Altcoin Season Index is sitting at 28, which means Bitcoin is still the main driver in the market. Altcoins are moving, but BTC is leading the way. Ethereum, the biggest altcoin by market cap, slipped 0.4% this week and is currently trading at $2,578. XRP also dipped, falling 1.6%. But others did better, Solana (SOL) gained 5.9%, Dogecoin (DOGE) added 3.9%, and Cardano (ADA) was up 1.4%. Among the top 100 altcoins, Worldcoin (WLD) led the pack with a 35% rally, with a market cap of $1.24 billion at press time. Close behind were Hyperliquid (HYPE), up 33.6% to $36.38, and SPX6900 (SPX), which rose 32.5% to $0.9602. See below: Source: CoinMarketCap Worldcoin’s rally followed a $135 million funding round backed by big names like a16z and Bain Capital Crypto. Hyperliquid surged over 33% this week, supported by record-breaking trading volume and open interest that helped it hit an all-time high of $37.24 on Friday. Most of the gains came after the Hyperliquid team said they had officially responded to the U.S. Commodity Futures Trading Commission about new regulations being proposed for perpetual swaps and 24/7 crypto trading. The L1 blockchain network also recorded a spike in network revenue, which further strengthened sentiment. As for SPX6900, its recent rally appears to be linked to renewed community interest following the S&P 500’s decline after Moody’s downgraded the U.S. sovereign credit outlook. Given the SPX6900 community’s ethos of “flipping the stock market,” sentiment often strengthens when traditional financial markets show signs of weakness. 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