Bitcoin Hits New All-Time High After Genuis Act Passage.
22nd May 2025 • 10 mins read
This Week’s Recap
- Bitcoin Hits New All-Time High Above $110,600 Amid Fiscal Concerns: Bitcoin surged to a record high of $110,636.58 on May 22, 2025, as investors responded to mounting macroeconomic pressures. The rally followed a credit rating downgrade of U.S. sovereign debt by Moody’s and a weak 20-year Treasury bond auction, both of which eroded confidence in traditional assets. Bitcoin ETFs recorded over $5 billion in cumulative net inflows in May alone, signaling robust institutional interest. Analysts note that the current uptrend is structurally stronger than in previous cycles due to clearer regulation, broader adoption, and an improving macro narrative favoring alternative stores of value.
- U.S. Senate Advances GENIUS Act Stablecoin Bill With Bipartisan Support: On May 21, the U.S. Senate voted 66–22 to advance the GENIUS Act, a bipartisan bill designed to regulate fiat-backed stablecoins. The legislation proposes a federal licensing regime, requiring stablecoin issuers to maintain dollar reserves and submit to oversight by U.S. banking authorities. Advocates argue that the bill will protect consumers and promote innovation, while critics warn of potential risks to financial stability and concerns over enforcement clarity. The GENIUS Act is widely viewed as a foundational step toward integrating stablecoins into the U.S. financial infrastructure, with implications for crypto adoption, payments, and regulatory frameworks globally.
- Hong Kong passes landmark stablecoin legislation: On May 21, Hong Kong’s legislature approved the Stablecoins Issuance and Supervision Bill, giving the Hong Kong Monetary Authority (HKMA) authority to license and oversee fiat-backed stablecoin issuers, set reserve requirements, and enforce redemption and risk-management standards—part of the city’s push to become a leading digital-asset hub.
- ECB aims for digital euro political deal by early 2026: In a May 15 Reuters interview, ECB board member Piero Cipollone said the bank is targeting a political agreement among EU governments on the digital euro’s legal framework by early 2026, after which a two- to three-year launch phase would follow, underscoring Europe’s race to issue its own CBDC.
- Crypto crime falls to multi-year lows in 2024: Chainalysis’ May 16 Crypto Crime Report showed that law-enforcement takedowns pushed darknet market BTC inflows down to just over $2 billion and fraud-shop revenues to $225 million in 2024—the lowest levels since 2018—highlighting the impact of global regulatory and investigative actions.
- DOJ opens probe into Coinbase cyberattack: On May 19, the U.S. Department of Justice launched a criminal investigation into the May 11 breach at Coinbase that compromised contractor-accessed customer data, focusing on the hackers rather than the exchange itself, after the incident was first flagged by an extortion demand.
- Coinbase warns of $180–$400 million loss from breach: In its May 15 SEC filing, Coinbase estimated a $180–$400 million hit from the attack—attributed to bribed support agents leaking names, addresses, and emails—while pledging full reimbursement to defrauded users and offering a $20 million reward for information leading to the perpetrators.
- SEC plans new crypto token rules: SEC Chair Paul Atkins told the agency’s Crypto Task Force on May 12 that he will initiate formal rulemaking to define which digital assets qualify as securities, establish registration pathways, and clarify custody and trading standards—shifting from ad-hoc enforcement to a comprehensive regulatory framework.
- EU to ban privacy coins and anonymous accounts: Under the forthcoming EU AML Regulation (effective July 1, 2027), licensed crypto-asset service providers will be prohibited from offering privacy-focused tokens like Monero or facilitating truly anonymous wallets, requiring customer due diligence on all transfers above €1,000 to close anonymity loopholes.
- DOJ refocuses digital-asset enforcement priorities: The “Blanche Memo,” issued May 15, directs U.S. prosecutors to concentrate on criminal uses of crypto—terrorism financing, fentanyl trafficking, and fraud—rather than pursuing regulatory-style cases against neutral platforms, marking a strategic shift in federal enforcement.
- Central bank tokenisation pilot affirms policy viability: A Project Pine prototype by the New York Fed and BIS Innovation Hub demonstrated on-chain execution of open-market operations using smart contracts and tokenised reserves, suggesting tokenisation could enhance the efficiency and flexibility of monetary policy.
- OECD’s CARF sets global crypto-tax standards: The OECD’s Crypto-Asset Reporting Framework, endorsed by G20 members, establishes a new standard for automatic exchange of crypto-transaction data among tax authorities, with jurisdictions committing to implementation by 2027 to bolster tax transparency and combat evasion.
- MicroStrategy, led by Michael Saylor, faces class action over Bitcoin losses: A May 2025 suit alleges MicroStrategy failed to disclose that an upcoming accounting standard change would force it to recognize a multibillion-dollar unrealized loss on its Bitcoin holdings, naming CEO Michael J. Saylor and other executives as defendants.
Bitcoin Market Analysis
Bitcoin began the week trading in the low $100,000 area, having found stable footing above its 200 day moving average near $93,000. Early buyers emerged as prices dipped toward that longer term trendline, setting the stage for a decisive shift in sentiment. On May 21, Bitcoin surged to new all-time high of $110,636.08, driven by easing US to China trade tensions and Moody’s downgrade of US sovereign debt, which together prompted investors to seek alternative stores of value according to Reuters.
https://altfins.com/technical-analysis
Optimism around the US stablecoin landscape reinforced the rally. Those expectations helped drive more than $3.6 billion of net inflows into Bitcoin exchange traded funds in May as reported by the Financial Times. As ETF flows gathered pace, Bitcoin briefly pierced $109 900 on an intraday basis. The institutional narrative gained further traction mid-week when Galaxy Digital, led by Mike Novogratz, debuted on Nasdaq on May 16. Shares opened at $23.50 and closed above $24, underscoring a broader sector rebound that coincided with Bitcoin’s roughly 10 percent year to date gain according to Reuters. Just days later, on May 19, JPMorgan Chase announced it would allow clients to gain Bitcoin exposure via statement entries without taking custody, even as CEO Jamie Dimon reiterated his personal skepticism as noted by Business Insider. That move marked a notable shift for a traditional bank of JPMorgan’s size and lent further credibility to Bitcoin’s institutional adoption story.
From a technical standpoint the break above the long-standing descending trendline marked a definitive end to the February through April downtrend. After confirming support at $100,000, price rallied into the $108,000 zone before settling into a tightening range between $100,000 and $108,000 then broke to a new all-time high. The relative strength index now sits just below 70 suggesting consolidation rather than an imminent reversal, while the moving average convergence divergence remains positive with both its MACD and signal lines above zero even as the histogram flattens. Volume surged on the initial breakout above $100,000 then tapered off during the all-time high test, reflecting traders locking in gains while fresh bids wait near support. Despite reaching a new record price, the funding rate remains far below levels seen at prior peaks and the ratio of bitcoins traded within one week to one month shows that short-term capital inflows are not accelerating as they did during past highs. Profit-taking by short-term holders has stayed muted compared with the heavy selloffs of March 2024 and November 2024. At the same time holdings in spot ETFs have climbed to fresh all time highs as both retail and institutional investors accumulate. Taken together these measures indicate the rally remains in a healthy upward phase rather than an overheated spike.
Key support levels to watch include the $100,000 floor now bolstered by the former descending trendline and the 200-day moving average near $93,000. On the upside, reclaiming $108,000 to $109,000 on a sustained basis would open the door toward the next supply zone in the $120,000 area. A clean retest of support would likely draw in fresh buyers and reinforce the uptrend while a decisive break below $100,000 could trigger a deeper pullback toward the 200-day average.
Source: https://x.com/RaoulGMI/status/1925237634596479400/photo/1
Looking at the M2 supply–Bitcoin price chart again, the 12-week lead relationship moves like clockwork: each uptick in global M2 has reliably foreshadowed a Bitcoin rally. Since early 2024, the 180-day Pearson correlation between M2 growth and BTC returns has averaged around 0.65, while shorter-term models with a 78- to 90-day offset have anticipated price moves with impressive consistency. During the 2020 quantitative-easing cycle, for example, M2 expanded by over 20% year-over-year as Bitcoin climbed from roughly $7,200 to $64,000, whereas the M2 contraction in 2022 coincided with BTC’s slide toward $17,000. With central banks still expanding global liquidity, the setup favors further upside for Bitcoin, while any deceleration in money-supply growth could presage a cooling of the rally.
Ethereum Market Analysis
Ethereum opened the week trading around $2,537 and then dipped to an intraday low near $2,353 on May 19 before buyers stepped in decisively. By May 16 the rebound had pushed Ether to a weekly high just under $2,647, driven by sustained demand from spot ETFs and renewed optimism following the Pectra upgrade. By May 22 price settled near $2,594, tracing out a series of higher highs and higher lows within an ascending channel that began at the time of the network upgrade.
Source: https://altfins.com/technical-analysis
Several developments underpinned this rally. On May 20 net inflows into spot Ethereum ETFs reached $64.8 million, led by ETHA and FETH, according to Blockchain News. Over the month Ether has outpaced Bitcoin by a wide margin, gaining 45 percent versus Bitcoin’s 10.7 percent return, spurred by improvements to user experience and faster finality thanks to Pectra, as reported by MarketWatch. In late May BlackRock filed for in kind redemptions of its Ethereum ETF shares—a move that coincided with Ether breaking free from a 22-week downtrend and surging 42 percent, according to The Defiant.
From a technical standpoint Eth remains contained within the ascending channel anchored at the Pectra launch levels. The relative strength index sits just above 70, suggesting that consolidation is more likely than an immediate reversal. The moving average convergence divergence indicator remains firmly bullish following its recent crossover even as its histogram has begun to flatten. Volume spiked on each breakout leg and had since steadied as buyers and sellers reached equilibrium.
Key levels to watch include the channel floor near the fifty-day simple moving average around $2,450 and the next supply zone in the $4,000 to $4,200 range. A sustained move above $4,200 would target all-time highs just below $5,000 while a return to channel support or a drop beneath key moving averages could open the door to a deeper retracement toward the $3,200 area.
Growing Investor Confidence
This week’s legislative and funding developments underscore a notable resurgence in market confidence across the crypto ecosystem. The Senate’s 14–9 vote to advance the bipartisan Genius Act demonstrated that policymakers recognize the need for a clear, uniform framework to support stablecoin issuers. At the same time, venture capitalists recommitted more than $6.6 billion to blockchain and crypto startups in Q1, a surge of over 100 percent year-over-year that marks the strongest quarter since early 2022. Together, these signals show that both regulators and institutional investors are increasingly aligned in their belief that crypto assets belong at the center of tomorrow’s financial infrastructure.
The Genius Act represents a turning point for the $250 billion stablecoin market, which last year facilitated over $28 trillion in on-chain transactions. By proposing a federal charter with mandated liquid-reserve requirements, regular independent audits, and standardized consumer protections, the bill would eliminate the patchwork of state-by-state rules that has long deterred major banks and fintech. That clarity is exactly what institutions have been waiting for: with a single set of rules, issuers can scale without fear of regulatory arbitrage, and investors gain confidence that stablecoins will maintain their peg and liquidity even under stress.
Beyond simply codifying reserves and audits, the Act’s provisions mirror the framework that governs money-market funds—requiring issuers to hold at least 110 percent of on-demand liabilities in high-quality, short-duration assets. This alignment with traditional finance standards offers a familiar blueprint for risk management and transparency, reducing concerns around issuer solvency or redemption freezes. In practice, these measures would lower capital-efficiency costs for compliant issuers and boost institutional appetite, further fueling the cycle of adoption and innovation in decentralized finance.
Mark Your Calendars
- May 22, 2025: S&P Global Flash U.S. Manufacturing PMI (May) published at 9:45 AM ET
- May 22, 2025: S&P Global Flash U.S. Services PMI (May) published at 9:45 AM ET
- May 28, 2025: Minutes of the Federal Reserve’s May FOMC meeting published at 2:00 PM ET
- May 29, 2025: U.S. GDP Q1 2025 (second estimate) published at 8:30 AM ET
- May 29, 2025: Initial Jobless Claims (week ending May 24) published at 8:30 AM ET
Token Unlock
- May 22, 2025: MURA (MURA) unlocks 10.00 M MURA ($3.92 M; 0.08 % of market cap)
- May 27, 2025: EIGEN (EIGEN) unlocks 1.29 M EIGEN ($2.01 M; 0.42 % of market cap)
- May 27, 2025: IOTA (IOTA) unlocks 15.17 M IOTA ($3.52 M; 0.45 % of market cap)
- May 27, 2025: FET (FET) unlocks 3.15 M FET ($2.59 M; 0.12 % of market cap)
