Why Is Crypto Up Today? – May 22, 2025

The bull is running. All top 10 coins and nearly all 100 coins per market cap saw their prices rise in the last 24 hours as a result of the ongoing crypto ETF positive flows and regulatory advancements, particularly in the stablecoin sector. At the same time, the cryptocurrency market capitalization has increased by 1.1% to $3.61 trillion. The total crypto trading volume is at $198 billion, the highest we’ve seen in weeks. TLDR: The crypto market rally continues as BTC hits fresh all-time highs; The bull market boosts investor confidence, sentiment, spending, and profit; Rally has more room to extend; ‘Pullbacks should be seen as entry opportunities—not signs of reversal’; Spot Bitcoin ETFs see a net inflow of $608.99 million; The rally remains sustainable, though pullbacks and short-term corrections are possible. Crypto Winners & Losers All top 10 coins per market cap have appreciated over the past day. Cardano (ADA) is the day’s best performer, for the second day in a row. It’s up 3.6% to $0.7876. Bitcoin (BTC) follows with a rise of 3.4%, currently trading at $111,187. The world’s number one coin has been testing new all-time highs for several hours now. At the time of writing, its highest local and all-time price is $111,544. At the same time, Ethereum (ETH) appreciated 0.9%, now changing hands at $2,623. It’s daily high is $2,631, the same level as yesterday. Furthermore, of the top 100 coins, only seven are red today, all with decreases between Maker (MKR)’s 0.6% and Aave (AAVE)’s 3.4%. The two trade at $1,762 and $252, respectively. The rally drivers remain the same: it’s a powerful combination of significant surge in crypto exchange-traded fund ( ETF ) inflows and favorable regulatory developments, further boosted by the somewhat improved US-China trade sentiment and a US sovereign debt credit downgrade by Moody’s. As a result, risk capital has been diverted back into crypto. The sector seems to be winning a battle towards clearer regulations. The US Senate has voted to advance the GENIUS Act . Blockchain Association Interim CEO and Head of Policy, Sarah Milby, described the move as “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 Crypto investment firm Bitwise CEO Matt Hougan has argued that the Act will legitimize mainstream stablecoin usage and propel this section of the market from $236 billion to $2.5 trillion . Also, the Legislative Council of Hong Kong has passed the Stablecoin Bill to provide regulated stablecoin issuance. “Hong Kong’s stablecoins are backed by fiat currency as underlying assets, and we welcome global enterprises and institutions interested in issuing stablecoins to apply,” said politician Johnny Ng. 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 ，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 Reclaiming New All-Time Highs According to the latest Glassnode report, even before hitting the new ATH, Bitcoin’s strong price performance over the past few days has improved investor portfolios, leading to many of them to de-risk and take profit. The Short-Term Holder cohort’s percentage of supply in profit increasing by more than 7% over the last month – the second-largest positive uptick in profitability for this cohort on record. The fresh ATH will provide additional fuel. Source: Glassnode All investor cohorts have seen improvement in their financial position. “This likely has the knock-on effect” of boosting investor confidence, sentiment, and spending, Glassnode says. “As market conditions improve, and investor portfolios recover, many are taking the opportunity to lock in profits.” Source: Glassnode The analyst team from the crypto exchange Bitfinex commented how Bitcoin has just reclaimed new all-time highs, breaking above the $109.5,000 level “with conviction and volume.” They stated that the move was a squeeze at first. The price moved up on short liquidations, and the first break could be reversed on lower timeframes. However, the rally from 75,000 onwards has been driven by “clean spot demand, ETF inflows, and a macro backdrop that continues to favour risk-on assets.” Per the team, “The recent geopolitical de-escalation (Russia–Ukraine), dovish undertones from global central banks, and softening inflation prints have all created an ideal environment for Bitcoin to act as a macro momentum asset.” Furthermore, the analysts noted stable funding rates, CVDs showing strong spot-led flows, and consistent ETF inflows, especially during US hours. “This is not leverage-driven,” the analysts argue. “It’s structurally bid. With open interest now rising alongside price (rather than front-running it), there’s room for this move to stretch further”. Levels & Events to Watch Next After briefly dipping its finger to test the all-time waters, BTC surged and surpassed the $109,900 level, followed by $110,000, and finally $111,100. How long it will be able to sustain it remains to be seen, but it has made significant long-term strides regardless of possible pullbacks. Per the Bitfinex analysts, the next zone to watch is $114,00–$118,000 as minor liquidity walls. After that, the next step is the $123,000–$125,000 zone, where large options open interest is building. “As long as ETF flows hold and macro doesn’t deliver a shock, this rally has room to extend. Pullbacks should be seen as entry opportunities—not signs of reversal.” Moreover, the Fear and Greed Index has jumped from 69 to 73 in a day, showcasing increased greed, rising investor confidence, boosted optimism, and a general willingness to take risks. Source: CoinMarketCap Moreover, so far on 22 May, spot Bitcoin ETFs have seen a significant net inflow of $608.99 million . This is its sixth consecutive day of inflows. The cumulative total net inflow reached $43.38 billion. Also, spot Ethereum ETFs recorded $587,130 in net inflows, for a fourth day of positive flows, resulting in the cumulative inflow of $2.59 billion. Furthermore, as crypto rallied, decentralized trading platform Hyperliquid saw open interest climb to a record $8.9 billion. Of the $19.15 billion in trading volume the platform hit over the past day, BTC accounted for $11.5 billion, ETH $4.03 billion, and SOL $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, critics are warning about a massive red flag coming from the White House. Today, US President Donald Trump will host top investors in the TRUMP meme coin at a gala in Washington, DC. This is just one of unethical moves Trump has made, critics say, given that the coin potentially enables foreign influences to buy his favor, giving them direct access to the president. This may also reflect on the market, so it’s something to keep an eye on, especially given the support some crypto insiders have given this endeavor. 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 Quick FAQ Why did crypto move against stocks today? As the crypto market rallies, the stock market records a notable drop. The S&P 500 is down 1.61%, the Nasdaq-100 fell 1.34%, and the Dow Jones Industrial Average saw a decrease of 1.91%. Investors are turning to assets like crypto and gold due to the rising concerns over rising Treasury yields, inflation, and interest rate hikes. Furthermore, Trump is pushing to pass a tax-cut bill that could add between $3 trillion and $5 trillion to the $36.2 trillion government debt. Is this rally sustainable? The rally remains strong for now. It has found strong support in institutional demand, fueled by macroeconomic conditions. That said, pullbacks are likely, while the growing greed could lead to short-term downward corrections. The post Why Is Crypto Up Today? – May 22, 2025 appeared first on Cryptonews .

Source: cryptonews