Bitcoin has smashed through a new all-time high of $110,000, driven by a wave of institutional investment that marks a stark departure from past, retail-fuelled bull runs.

‎

The world’s largest cryptocurrency climbed to $110,032 on Wednesday morning, capping off a staggering 25% rally since the start of May. Analysts point to sustained inflows into US-listed Bitcoin ETFs and growing corporate treasury allocations as key forces behind the surge.

‎

“This isn’t 2021 all over again,” said Valentin Fournier, lead analyst at BRN. “The players now are pension funds, asset managers and public companies. Bitcoin is being treated like a strategic asset, not a moonshot.”

‎

According to data from SoSoValue, net ETF inflows topped $6.4 billion over the past four weeks. Bitcoin’s total market capitalisation now stands at $2.17 trillion – larger than Meta or Tesla, and firmly entrenched among the world’s most liquid financial instruments.

‎

Among the latest corporates to jump in are Tether’s “Twenty One,” Vivek Ramaswamy’s “Strive,” and Méliuz, a Brazil-based fintech founded by Israel Salmen. Strategy (formerly MicroStrategy), MetaPlanet and Marathon Digital are also expanding their holdings – in some cases using leverage.

‎

The shift in tone comes against a volatile backdrop for traditional markets. The S&P 500 fell sharply on Wednesday, down 1.6%, while the Dow lost nearly 820 points. Long-term Treasury yields spiked as investors absorbed the impact of a weak bond auction and fresh concerns over the US deficit ahead of Speaker Mike Johnson’s budget deadline.

‎

For Bitcoin bulls, that uncertainty only strengthens the case.

‎

“Bitcoin is increasingly seen as a hedge – not just against inflation, but against the dysfunction of traditional institutions,” said one trader. “That narrative is resonating.”

‎

The rally also coincides with easing tensions between the US and China, boosting overall risk sentiment. And while retail participation is creeping back in, it’s clear the fuel this time is different.

‎

Bitcoin first crossed the symbolic $100,000 mark in December 2024, days after Donald Trump’s re-election, which sparked renewed interest in crypto. But it’s only now, with regulation and infrastructure maturing, that institutional demand appears to be in full swing.

‎

Still, volatility remains a constant risk – especially with global interest rates and fiscal policy hanging in the balance. For now, though, crypto markets are revelling in a rare moment of validation.

‎

‎