Last week (May 12 - May 19), BTC was driven by multiple factors to briefly break through $107,000, reaching a new high since May. Following a surge that broke through $100,000 the previous week, BTC's price remained in a high-level consolidation from May 12 to May 17, until it quickly rose after 20:00 on the 18th, breaking through the strong resistance level of $104,000 ~ $105,000 from the previous consolidation phase. In the early hours of the 19th, it briefly reached a high of $107,108.62, setting the highest weekly closing price ever. Subsequently, BTC's price retraced to around $105,000 and found support, with the current price at $105,460, and a maximum volatility of 6.34% during the week.
In contrast, ETH's price fluctuated and retraced after hitting a high. Influenced by the warming of the U.S. April CPI data, ETH quickly rose after 20:00 on the 13th, briefly reaching a high of $2,738.5, and then entered a technical correction over the following days, oscillating widely in the $2,400 ~ $2,600 range. On the 19th, ETH dipped below $2,400 twice but quickly rebounded, with the current price stabilizing around $2,550, and a maximum volatility of 15.16% during the week (data source: Binance spot, May 20, 14:50).
As of the close on May 19, the three major stock indices opened lower but rose during the session. U.S. Treasury yields surged and then fell back, showing a V-shaped reversal. The dollar weakened, dropping over 0.7%, approaching the psychological level of 100 points.
Market Interpretation
ETF inflows and institutional trading activities drive BTC to break through $107,000
Recently, Bitcoin spot ETFs listed in the U.S. have continued to see inflows, with a net inflow of over $5.6 billion since April and a cumulative net inflow of over $41 billion since the beginning of 2024. The inflow of funds has directly driven BTC prices higher, breaking through $107,000 with significant volume from the evening of May 18 to the early hours of May 19, setting a new high for May.
Data shows that there have been multiple large BTC transfers on-chain recently, while leveraged fund short positions have decreased, indicating that the inflow of funds is more from institutional bullish positioning rather than arbitrage trading. The net outflow of BTC from exchanges has increased, easing market selling pressure. The sentiment index has risen from neutral to greed, suggesting that the short-term market may maintain a strong oscillation.
Gold prices retrace, diverting safe-haven funds from BTC
Since April 2025, gold and BTC have shown a divergence in trends. Gold has risen nearly 30% from the beginning of the year to early May, but since late April, influenced by a stronger dollar, tighter Federal Reserve policies, and U.S.-China trade developments, gold prices have fallen from a mid-May high of $3,394/ounce to $3,127/ounce, a cumulative decline of about 8%.
On the funding side, inflows into gold ETFs have slowed, with even outflows occurring in mid-May. In contrast, BTC spot ETFs have seen significant daily inflows, indicating that institutional safe-haven allocations are beginning to tilt towards crypto assets. The dollar index has oscillated at high levels, and interest rates remain tight, putting pressure on gold, while BTC, supported by policies and inflows, has gained more recognition for its "digital safe-haven" attributes.
U.S. April inflation data shows divergence, probability of Fed rate cut in June rises to 91.4%
The U.S. April CPI rose 0.3% month-on-month, with core CPI also rising 0.3%, which is basically in line with expectations, leading to a mild market reaction to the short-term data.
At the same time, the PPI unexpectedly fell 0.5% month-on-month, marking the largest decline in five years, reflecting pressure on corporate profits, with some tariff costs absorbed by companies. Overall, the transmission of inflation remains insufficient, pushing market expectations for the Fed to maintain interest rates in June up to 91.4%.
Market Highlights
U.S. Senate advances stablecoin regulatory bill, industry regulation enters a new phase
On May 20, 2025, the U.S. Senate passed a procedural motion for the "GENIUS Act" with 66 votes in favor and 32 against, marking a key step in U.S. stablecoin regulation. The bill aims to establish a federal regulatory framework, clarifying issuing entities, reserve requirements, and compliance standards, filling regulatory gaps.
Total value of RWA surpasses $22.6 billion, U.S. leads global tokenization innovation
As of May 20, the total value of RWA reached $22.6 billion, growing 5.85% over 30 days, with over 101,854 holders. Wall Street institutions like BlackRock and Goldman Sachs are actively promoting asset tokenization, and U.S. policies are also strengthening support, driving the continuous expansion of the tokenization ecosystem.
Hong Kong Securities and Futures Commission releases regulatory framework for staking services, strengthening compliance signals
The Hong Kong Securities and Futures Commission has issued a notice clarifying the regulatory requirements for virtual asset trading platforms providing staking services. This measure provides a clear compliance path for the market, expected to enhance trust and promote the healthy development of Hong Kong's virtual asset ecosystem.
Labubu craze drives MEME coin LABUBU's market cap surge
The Labubu craze has spilled over into the crypto market, with the market cap of MEME coin LABUBU skyrocketing from several hundred thousand dollars to $18 million in a week, with a 24-hour trading volume reaching $9.5 million. Previously, Labubu had high popularity in Thailand, and this round of enthusiasm, combined with the resonance of physical collectibles and market sentiment, has significantly increased funding attention.
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