Unstoppable Bitcoin... Surpasses $110,000 for the First Time Ever

Record High in 16 Years and 4 Months
Trump's Policy Pledges Pass Congress
Bitcoin Leads the Rally
Ethereum and Other Altcoins Also Surge
Major Investors Expand ETF Investments
Nearly 5 Trillion KRW Inflows in May
Largest Monthly Inflow Since January

Bitcoin, the leading cryptocurrency, has reached the "dream milestone" of $110,000, setting a new all-time high in its 16 years and 4 months of history. The rally was driven by a series of policies promised by U.S. President Donald Trump, including a bill for the strategic reserve of digital assets, which have consecutively passed the threshold of the U.S. Congress. Ahead of the bill's passage, inflows into Bitcoin exchange-traded funds (ETFs) in May alone have approached 5 trillion KRW.

According to CoinMarketCap, a global cryptocurrency market data site, Bitcoin was trading at $110,269 as of 10:10 a.m. KST on May 22. This represents a 2.41% increase from the previous day and a 5.78% rise compared to a week earlier. Compared to a month ago, the price is up by 25.48%, and compared to a year ago, it has surged by 55.86%. Earlier in the day, around 9:25 a.m., Bitcoin soared to $110,724, surpassing the $110,000 mark for the first time.

The rally in Bitcoin, the leading cryptocurrency, is spreading its momentum to altcoins (cryptocurrencies other than Bitcoin) as well. Ethereum, the leading altcoin, rose by 1.95%, and major coins such as Ripple (XRP), BNB, Solana, Sui, and Avalanche posted strong gains in the 2-4% range. OfficialTrump, the meme coin officially announced by President Trump, also recorded a 1.78% increase.

The movements of "whales" have also accelerated, with large inflows of funds into spot Bitcoin ETFs. According to the UK Financial Times (FT), as of May 21, more than $3.6 billion (approximately 4.9492 trillion KRW) has flowed into U.S. spot Bitcoin ETFs in May alone. This is the largest monthly inflow since January of this year.

The efforts to legislate digital assets by the Trump administration's second term appear to be driving the Bitcoin rally. On May 20, the U.S. Senate passed the National Stablecoin Innovation and Establishment Act (GENIUS Act) with 66 votes in favor, 32 against, and 2 abstentions in a cloture vote. Stablecoins are cryptocurrencies pegged to specific assets such as the U.S. dollar or euro to minimize price volatility. The bill stipulates requirements such as one-to-one reserve holdings by stablecoin issuers, mandatory anti-money laundering (AML) compliance, consumer protection, and oversight by federal and state regulatory authorities.

Although the essence of the bill is regulatory, the market generally interprets it positively as it helps resolve regulatory uncertainty. Yesha Yadav, a professor at Vanderbilt Law School, told UK Newsweek, "If the GENIUS Act passes the full session, it will be a significant turning point for the integration of the digital asset market into the mainstream financial system."

On the same day, the Texas House of Representatives passed a bill for the strategic reserve of Bitcoin. This bill, which allows for the long-term holding of digital assets with a market capitalization of over $50 billion in the past 12 months, has received legislative approval and is now awaiting the governor's signature. Once signed, Texas will become the second U.S. state to officially permit Bitcoin reserves, following New Hampshire, where the governor signed a similar bill on May 6.

The fact that Texas is the second-largest state economy among the 50 U.S. states adds to the anticipation. According to Cointelegraph, a digital asset media outlet, Texas's gross domestic product (GDP) as of 2024 is approximately $2.7 trillion, ranking second in the United States. According to Statista, Italy, ranked eighth globally in GDP last year, had a GDP of $2.3765 trillion, while Korea, ranked twelfth, had $1.8699 trillion, making Texas's economy even larger.

Meanwhile, the threshold for cryptocurrency investment is also lowering. On May 19, global investment bank JP Morgan announced that it would allow its clients to purchase Bitcoin. Jamie Dimon, CEO of JP Morgan, attended the bank's annual investor event in New York and stated, "I do not encourage smoking, but I defend your right to smoke," adding, "I also defend your right to buy Bitcoin." However, he clarified that JP Morgan will not provide direct custody (Bitcoin storage) services.