When the Dow Jones Industrial Average plunged 816.8 points on May 21, Bitcoin (BTC) defied the trend, surging past $110,000 the following day and setting a new all-time high on National Pizza Day. Its market capitalization soared beyond $2.2 trillion—overtaking Amazon and securing a spot among the world’s top five most valuable assets. As U.S. equities and Treasuries weaken, investors are asking: What’s shifting beneath the surface of global markets? The inclusion of Coinbase in the S&P 500 index signals a broader institutional embrace of digital assets, while domestic momentum builds with the launch of Taiwan’s TWEX virtual asset exchange. Amid rising speculation—could Bitcoin hit $500,000 during a potential second Trump term?—Wall Street analysts are weighing in.
Bitcoin Breaks $110K: A New Era of Digital Value
On May 22, Bitcoin officially crossed the $110,000 threshold, reaching an intraday peak of $111,880. This milestone pushed its total market cap above $2.2 trillion, surpassing Amazon’s $2.14 trillion valuation. Now ranked fifth globally, Bitcoin trails only gold, Microsoft, NVIDIA, and Apple in asset value.
This isn’t just a price movement—it's a structural shift. The rally reflects growing confidence in Bitcoin as a long-term store of value and highlights the accelerating integration of crypto into traditional finance.
👉 Discover how institutional adoption is reshaping the future of investing.
“Digital Gold” in Demand: Macro Trends Fueling BTC’s Rise
Bitcoin’s surge is being driven by a confluence of macroeconomic forces:
- Easing inflation in the U.S.
- De-escalating U.S.-China trade tensions
- Moody’s downgrade of U.S. sovereign credit rating
These developments have amplified interest in alternative assets perceived as hedges against systemic risk. Bitcoin, increasingly labeled “digital gold,” is benefiting from this flight to safety.
Antoni Trenchev, co-founder of cryptocurrency platform Nexo, told CNBC that these macro tailwinds are creating ideal conditions for digital assets:
“Bitcoin’s new high is not a bubble—it’s a reflection of real-world instability and the search for resilient value stores.”
Additionally, spot Bitcoin ETFs have opened the floodgates for institutional capital. Billions have flowed into these regulated products since their approval in early 2024, with clear evidence of fund rotation from gold ETFs to Bitcoin ETFs.
Even central banks are taking note. The Swiss National Bank and Norway’s central bank have been observed increasing exposure to crypto-related financial instruments. Meanwhile, New Hampshire passed a “Strategic Bitcoin Reserve” bill, potentially setting a precedent for other U.S. states to follow.
Price Predictions Skyrocket: $200K by Year-End? $500K by 2029?
Bullish forecasts are growing bolder.
Geoffrey Kendrick, Global Head of Digital Asset Research at Standard Chartered, initially projected a $120,000 target for Q2 2025—but now admits that estimate may be too conservative. He emphasizes that real capital inflows, not speculation, are driving the momentum.
Other experts echo this optimism:
- Matt Hougan, Chief Investment Officer at Bitwise: Predicts Bitcoin could reach $200,000 by year-end due to supply constraints and rising institutional demand.
- Arthur Hayes, co-founder of BitMEX: Shares the $200,000 outlook, citing monetary expansion and geopolitical uncertainty.
- Presto Research: Forecasts a $210,000 ceiling based on network adoption metrics.
- Standard Chartered: Projects Bitcoin could climb to $500,000 before the end of a second Trump administration in January 2029, assuming pro-crypto policies continue.
While such numbers sound extreme, they reflect growing confidence in Bitcoin’s scarcity model and its role in diversified portfolios.
Coinbase Joins S&P 500: A Watershed Moment for Crypto
A pivotal catalyst emerged on May 19: Coinbase became the first crypto-native company added to the S&P 500 index. This inclusion marks a historic step toward mainstream financial acceptance.
Brian Armstrong, CEO of Coinbase, hailed the move:
“This means every 401(k) plan, pension fund, and index tracker will now have exposure to crypto assets. It’s Wall Street’s strongest endorsement yet.”
Beyond symbolism, inclusion brings tangible benefits:
- Automatic investment from passive funds tracking the S&P 500
- Enhanced credibility with regulators and traditional investors
- Increased liquidity and trading volume
The decision also reflects broader regulatory progress. On May 20, 2025, the U.S. Senate advanced a procedural motion for the GENIUS Stablecoin Bill, which aims to establish a clear federal framework for stablecoin issuance. If passed, it would provide legal clarity long sought by the industry.
Armstrong called it “a major policy victory for blockchain innovation.” Former President Donald Trump has expressed support and hopes to sign the legislation before Congress adjourns in August.
👉 Learn how regulatory clarity is accelerating crypto adoption worldwide.
Institutional Shift: Bitcoin as a Core Inflation Hedge
Asset managers are no longer treating Bitcoin as speculative fringe tech. According to Hashdex, a leading digital asset manager, institutions and even government bodies are beginning to allocate to Bitcoin as part of strategic asset allocation.
Gerry O’Shea, Institutional Markets Head at Hashdex, noted:
“We’re seeing increased frequency and depth of engagement—from pension funds to sovereign wealth entities. This isn’t FOMO; it’s foundation-building.”
Bitcoin’s fixed supply of 21 million coins makes it inherently resistant to inflation—a trait gaining appeal amid persistent currency debasement concerns.
However, experts caution that volatility remains high. Past cycles show sharp corrections following rapid rallies. Investors should approach with discipline, focusing on long-term holding strategies rather than short-term speculation.
Frequently Asked Questions (FAQ)
Q: Why is Bitcoin rising while U.S. stocks fall?
A: Bitcoin is increasingly viewed as a non-correlated or even negatively correlated asset during times of financial stress. When equities drop due to macro fears or rate uncertainty, investors often turn to scarce digital assets like Bitcoin as an alternative store of value.
Q: Does Coinbase joining the S&P 500 directly boost Bitcoin’s price?
A: Not directly—but it legitimizes the entire ecosystem. Institutional portfolios tied to the S&P 500 will now indirectly support crypto infrastructure companies, increasing confidence and capital flow across the sector.
Q: Is the $500,000 Bitcoin prediction realistic?
A: While aggressive, it’s not implausible under favorable conditions—such as sustained ETF inflows, global monetary instability, and supportive U.S. policy. Historical growth patterns suggest exponential moves are possible during adoption inflection points.
Q: How can retail investors participate safely?
A: Through regulated channels like spot Bitcoin ETFs or licensed exchanges. Dollar-cost averaging (DCA) helps reduce timing risk. Avoid leverage unless experienced.
Q: Could government regulation hurt Bitcoin?
A: Clear regulation can actually help by reducing uncertainty and enabling wider adoption. However, overly restrictive rules could limit innovation. The current trend favors balanced oversight.
Q: Is now too late to invest in Bitcoin?
A: With only around 19 million BTC mined and adoption still early globally, many analysts believe we’re in the middle innings of the adoption curve—not the final stages.
👉 Start your journey into secure, compliant crypto investing today.