On May 22, 2025, Bitcoin's price broke $110,000 for the first time, setting a new historical high. This milestone not only marks the recovery of the cryptocurrency market but also reveals the underlying logic of this bull market—structural changes dominated by institutional capital.
The entry of corporations, ETFs, and sovereign funds has become the core driving force. MicroStrategy, with a holding of 576,230 Bitcoins, firmly holds the title of "HODL King," while BlackRock recently invested $306 million to increase its position, boosting market confidence. This week, the net inflow into U.S. spot Bitcoin ETFs exceeded $1.5 billion, with total assets under management surpassing $129 billion, accounting for 6% of Bitcoin's market value.
The U.S. "GENIUS Stablecoin Act" passed a procedural vote in the Senate, introducing compliant funding channels for the crypto market; simultaneously, Hong Kong's "Stablecoin Regulation Draft" was implemented, gradually clarifying the global regulatory framework. Meanwhile, geopolitical risks and dollar fluctuations have led institutions to view Bitcoin as "digital gold," with JPMorgan noting that Bitcoin is stealing hedge fund capital from gold.
After the 2024 halving, Bitcoin's block reward will drop to 3.125 coins, and the annual inflation rate will fall below 0.5%, further highlighting its scarcity. Miners are maintaining profitability and supporting network security by upgrading ASIC miners (such as Bitmain's Antminer S21+) and relocating to low-cost energy regions like the Middle East and Africa.
After breaking $110,000, market predictions for the peak position have polarized: conservatives anchor on supply-demand logic, while radicals bet on a paradigm revolution.
Institutions like Standard Chartered and Intellectia AI believe that ETF inflows and macroeconomic hedging demand will drive Bitcoin to double to $200,000 by 2025. Bernstein emphasizes that the supply tightening post-halving and institutional allocation demand create a "perfect storm," with a target price also set at $200,000.
Silicon Valley venture capital mogul Tim Draper predicts $250,000; Blockstream CEO Adam Back even proposed a "surreal target" of $500,000 to $1 million, arguing that the entry of sovereign wealth funds could fundamentally change the market size. BlackRock CEO Larry Fink bluntly stated that if institutional allocation increases, Bitcoin could soar to $700,000.
Despite the soaring prices, network health indicators reveal hidden concerns: transaction confirmation times have shortened to under 20 minutes, mining pool concentration has risen, and average fees are below $1, indicating that on-chain activity still relies on block subsidies rather than real demand. Alphractal's CEO warns that high-leverage areas could trigger a wave of liquidations, and investors should be cautious of short-term volatility.
Long-term narrative: The "store of value" debate beyond cycles
Bitcoin's ultimate question has shifted from "Will it replace gold?" to "How do we define global reserve assets?"
By 2140, when all Bitcoins are mined, miner income will rely entirely on transaction fees. If the on-chain ecosystem (like the Lightning Network) fails to scale, high fees could undermine its payment attributes, but the narrative as a "deflationary store of value" will become more solidified.
Trump's tariff policies, fluctuations in dollar credit, and sovereign nations' allocation of crypto assets (like El Salvador) continue to provide macro momentum for Bitcoin. Standard Chartered predicts that if a wave of asset reallocation in the U.S. begins, Bitcoin could surpass $500,000 by 2029.
The shift of Ethereum to proof of stake and the rise of high-performance chains like Solana pose challenges to Bitcoin's "technological stagnation." If Bitcoin cannot find a balance between scalability and energy consumption, its market share may be eroded.
Cold reflection amidst the celebration
Bitcoin's new high of $110,000 is both a milestone in institutional capital reshaping the financial order and a magnifying glass on market vulnerabilities. In the coming months, three key signals should be closely monitored: ETF fund flows, stablecoin legislative progress, and miner hash rate migration. Whether the price surges to $200,000 or $500,000, the essence of this experiment has never changed—redefining the measure of value in the fissures between tradition and disruption.
Original text: “Bitcoin (BTC) Breaks $110,000: Can 'Digital Gold' Under Institutional Frenzy Open Up the Stars and the Sea?”
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