Bitcoin has been blocked at the $110,000 mark, but institutional investors are still continuing to buy large amounts of Bitcoin. The following is the relevant analysis:
Price trend: In May 2025, the price of Bitcoin broke through the $110,000 mark within just a few days, setting a new historical high. However, shortly after peaking, the price rapidly dropped to around $106,000 and even once fell below the key support level. As of May 22nd, Bitcoin is currently quoted at approximately $109,685.05, up 2.76% from yesterday. The intraday fluctuation range is between $106,109.5 and $109,450.5. Despite a pullback, the price on the daily chart still shows a clear upward trend, with an increase in trading volume, indicating strong buying power.
Institutional buying situation: Multiple institutions continue to buy Bitcoin, indicating that their confidence in the long-term value of Bitcoin remains firm. For instance, Strategy (formerly MicroStrategy) increased its holdings of 7,390 Bitcoins at an average price of $103,498 from May 12th to 18th, with a total expenditure of approximately $764.9 million. As of May 18th, Strategy held 576,230 Bitcoins, with a cumulative investment of approximately 40.18 billion US dollars, an average cost of 69,726 US dollars per coin, and currently has a floating profit of over 20 billion US dollars. In addition, institutions such as BlackRock have also taken actions to increase their holdings of Bitcoin.
Market catalytic factors: First, the support of the regulatory environment in the United States. The market’s expectations for regulatory clarity during President Trump’s tenure have risen, and the progress made in the legislation of stablecoins in the United States has provided a positive regulatory expectation for the cryptocurrency market, which has provided an important support for the price of Bitcoin. Second, the expectation of the Federal Reserve cutting interest rates has materialized, and interest rates have entered a downward cycle, with global risky assets generally rebounding. Thirdly, the effect of the fourth halving of Bitcoin has been released, and market consensus has strengthened the bull market logic of “mismatch between supply and demand”.
However, there are also some hidden concerns in the market. From the perspective of on-chain data, the inflow of Bitcoin into exchanges has risen, the number of active addresses has declined, and the net inflow of new funds has slowed down. The on-chain profit margin indicator has been operating at a high level for several weeks, suggesting that a large number of token holders are already in a profitable state and there may be a temporary selling pressure. At the macro level, factors such as the unclear path of the Federal Reserve’s interest rate cut, the rebound in US Treasury yields, and the continuous pressure from regulation may also have an impact on the price of Bitcoin.
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