HashKey Jeffrey: Bitcoin hits new all-time high, digital gold迎来加冕时刻
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HashKey Jeffrey: Bitcoin hits new all-time high, digital gold迎来加冕时刻
In the coming years, the global stablecoin market is expected to expand from its current $250 billion to over $1 trillion.
Navigating Web3 tides with focused insightsAuthor: Jeffrey Ding, Chief Analyst at HashKey Group
On May 21, 2025, Bitcoin's price surged past $109,565, setting a new all-time high. Amid easing trade tensions, increased institutional investment, and supply tightening, Bitcoin has once again proven its unique value as digital gold, with scarcity and consensus amplified at this moment.
Notably, the day before Bitcoin broke through this key level, the U.S. Senate advanced a procedural motion on the GENIUS Stablecoin Bill by a vote of 66:32. The GENIUS Stablecoin Bill will establish a federal regulatory framework for dollar-denominated stablecoins, enabling traditional banks to use existing deposit and lending channels to provide collateral and clearing services for stablecoin issuance. Combined with DeFi protocols' on-chain interoperability, this "on-chain–off-chain" liquidity bridge will unleash substantial capital momentum. From a liquidity spillover perspective, the scalable expansion of stablecoin supply will directly boost available funds on exchanges and DeFi platforms, significantly reduce trading slippage, and enhance the feasibility of leveraged strategies. Market volatility and upward price pressure will also be further amplified in this process.
Similarly, Hong Kong passed its Stablecoin Bill in the third reading yesterday. The bill is expected to take effect within this year, giving the industry sufficient time to understand licensing requirements, marking Hong Kong as one of the first jurisdictions globally to complete stablecoin legislation. The Hong Kong stablecoin draft aims to provide a clear regulatory framework for the local market, promoting compliant development of stablecoins.
We expect that in the coming years, the global stablecoin market cap will expand from the current $250 billion to over $1 trillion. More importantly, the compliance of stablecoins will attract more "quasi-dollar" capital into the market, strengthening the safe-haven and value storage attributes of core assets like Bitcoin and Ethereum. As these funds gradually flow in, Bitcoin and Ethereum could see valuation increases of 20%–50% within the next 6–12 months. Meanwhile, the maturation of compliant channels will provide long-term capital such as pension funds and mutual funds with access to the crypto market, greatly enhancing demand stability and effectively reducing structural risks. The interplay between policy tailwinds and market consensus is opening up a new growth trajectory for Bitcoin and crypto assets.
Beyond macro-level policy drivers, market dynamics are reinforcing Bitcoin’s scarcity narrative. According to Glassnode data, Bitcoin holdings by long-term holders have risen to 13.76 million, accounting for 65.6% of the circulating supply—a new high. Exchange reserves of Bitcoin continue to decline, dropping to just 2.437 million as of May 20, the lowest level since 2018. This indicates that the amount of Bitcoin available for trading is rapidly shrinking, further solidifying the foundation for price appreciation due to supply-demand imbalance.
At the same time, strong inflows of institutional capital have become a powerful catalyst for the rally. MicroStrategy added another 7,390 Bitcoin within the past week, bringing its total holdings to 576,230 BTC, valued at approximately $6.1 billion at current prices. Grayscale’s Bitcoin Trust (GBTC) and multiple Bitcoin ETFs have attracted over $633 million in net inflows in recent weeks. Sustained institutional positioning through compliant channels not only strengthens market consensus around Bitcoin’s scarcity and digital gold properties but also establishes solid demand-side support for sustained price appreciation. This is a victory for "long-term thinking"—when institutions treat Bitcoin as part of core asset allocation, its value ceiling is fundamentally redefined.
The macroeconomic environment has also provided fertile ground for Bitcoin’s rise. In early May, Trump’s remark about a “historic deal with a major country” sparked optimistic expectations for Sino-U.S. trade reconciliation. On May 12, China and the U.S. signed a tariff agreement, reducing reciprocal tariffs from a peak of 84% down to 10%. This unexpectedly positive policy breakthrough has not only eased global economic uncertainty but also injected fresh upward momentum into risk assets like Bitcoin.
From policy liberalization to supply contraction, from institutional accumulation to the establishment of liquidity channels, this Bitcoin rally represents the convergence of multiple driving forces. Behind this new all-time high lies not only a celebration of market capital but also a sign that global capital is undergoing a renewed consensus on the value of decentralized assets.
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