Bitcoin breaks through the $110,000 mark for the first time! Institutional buying pressure and regulatory favoritism strengthen the "bull market logic".

The trading price of Bitcoin, the world's largest market capitalization cryptocurrency, has exceeded $110,000 for the first time, reaching a historic high. With the increasing buying scale of institutional investors into Bitcoin ETFs and the growing demand for Bitcoin as a safe-haven investment amidst the emotionally charged tariff and immigration restriction policies led by the Trump administration causing a "sell-off of American assets", combined with positive progress in stablecoin legislation in the United States, traders are increasingly bullish on the prospects of this original cryptocurrency. In 2024, the Standard Chartered Bank, which accurately predicted the unprecedented bull market curve of Bitcoin, once again predicts that the price of Bitcoin may surpass $120,000 in the second quarter and reach a historical high. The bank forecasts that by the end of 2025, the price of Bitcoin will soar to $200,000, and it predicts that Bitcoin will skyrocket to $500,000 before the official departure of US President Donald Trump in 2029. Standard Chartered Bank had long bet that by the end of 2024, the price of Bitcoin would exceed $100,000, and Bitcoin finally broke through $100,000 in December, setting a new historical high at that time. According to the latest data compiled by institutions, Bitcoin rose by 3.3% on Thursday, hitting a record high of $111,878. Other cryptocurrencies also surged, with Ethereum, the second-largest cryptocurrency by market capitalization, rising by approximately 5.5% during the Asian trading session. Driven by a wave of extreme optimism, the trading price of Bitcoin continues to climb. The US Senate is steadily advancing a critical stablecoin bill, leading the market to anticipate a clearer regulatory framework for digital asset enterprises under the leadership of President Trump, who openly supports cryptocurrencies. Furthermore, Michael Saylor's company MicroStrategy, known as the "shadow stock of Bitcoin," continues to accumulate Bitcoin, with a current value of over $50 billion worth of Bitcoin. More and more investment institutions focusing on cryptocurrencies are joining the trend of buying Bitcoin ETFs and increasing their holdings, becoming important drivers of the recent significant increase in Bitcoin and other cryptocurrencies. Many cryptocurrency startups are following in the footsteps of MicroStrategy. "This is a slow-motion journey to new highs due to the increasing demand for Bitcoin through SPAC and PIPE financing, reflected in the premium data of Coinbase spot prices," said Joshua Lim, Global co-head of Markets at FalconX Ltd, a cryptocurrency company. These market buyers include a group of small-cap companies and newly formed public companies in the crypto industry, who raise funds through convertible bonds, preferred stocks, etc., to purchase Bitcoin and other cryptocurrencies. An affiliate of Cantor Fitzgerald LP is working with stablecoin issuer Tether Holdings and SoftBank Group led by Masayoshi Son to establish Twenty One Capital Inc., a company that seeks to replicate MicroStrategy's balance sheet holding model. A subsidiary of Strive Enterprises Inc., co-founded by Vivek Ramaswamy, is merging with the Nasdaq-listed company Asset Entities Inc. to create a specialized stock-based cryptocurrency company that holds Bitcoin. MicroStrategy, also known as the "large holder of Bitcoin" and "shadow stock of Bitcoin," has made numerous decisive purchases of Bitcoin during price plunges in recent years, demonstrating its commitment to stabilizing the trend of Bitcoin prices and its long-term confidence in holding Bitcoin. More and more investment institutions focusing on cryptocurrencies are following MicroStrategy's lead in increasing their Bitcoin holdings. Co-founder Saylor of MicroStrategy made a decisive decision four years ago to lead this small enterprise software manufacturer that had been teetering on the edge of bankruptcy onto a different path - betting on the rising value of Bitcoin. Under his leadership, MicroStrategy has accumulated over $50 billion worth of Bitcoin in the past four years. The facts proved that Saylor was right, as Bitcoin rose from around $10,000 to $110,000 in the past four years, an 11-fold increase. Some financial experts even called MicroStrategy the "most successful investment bank in human financial history", as the company went from struggling on the brink of bankruptcy, to now having a market capitalization exceeding $100 billion with the help of investor enthusiasm brought about by its large Bitcoin holdings. The current total market value of the company far exceeds the market value of its Bitcoin holdings, as it saw a "rocket-like rise" in its stock price following the start of the Bitcoin bull market in 2024. "This rally is not solely driven by momentum and speculation, unlike previous cycles," said Julia Zhou, Chief Operating Officer of Caladan. "It is supported by measurable and sustained demand-supply mismatches at the quantitative level." The performance gap between Bitcoin and relatively small cryptocurrencies is widening. The cryptocurrency index tracking so-called altcoins has fallen by about 40% since the beginning of the year, while Bitcoin has risen by 17% year-to-date, outperforming the S&P 500 index by a significant margin. Is $120,000 the next stop for Bitcoin? Statistics show that the 12 Bitcoin ETFs focused on the spot market in the US stock market have experienced strong fund inflows, with net inflows of approximately $4.2 billion so far this month. In the options market, traders earlier this week opened positions in noticeably high-profile Bitcoin investments.Bullish positions on the currency - 11,000, 12,000, and 30,000 USD call option contracts expiring on June 27, have the highest number of open contracts on the derivative exchange Deribit.In a report, IG market analyst Tony Sycamore stated that the drop from the historical high point of Bitcoin on January 20 to below $75,000 in April is a correction in this bull market trend of Bitcoin. He added, "If it can continue to break through the $110,000 mark, it will open up the next wave of bull market trajectory towards $125,000." The latest milestone in Bitcoin trading prices coincides with former President Trump's plans to host a dinner at his golf club in the suburbs of Washington on Thursday evening for the largest holders of meme cryptocurrencies. This event has raised concerns among market ethics experts, who believe that it provides a channel for transactions that directly benefit the President, leading to criticism due to potential conflicts of interest. "These events highlight the increasing exposure of cryptocurrencies in investment culture, but currently have not had a measurable impact on the dynamics of the cryptocurrency market," said Yuan Rong Tan, a trader from QCP Capital. Several analysts have recently stated that if the value of the US dollar continues to decline due to diminishing confidence of global investors in holding US dollar assets, Bitcoin can continue to serve as a "safe haven trading asset" alongside gold. Standard Chartered Bank, which is bullish on assets such as Bitcoin, has stated that institutional safe-haven funds are reallocating from gold to Bitcoin, while "whales" (i.e., large coin holders) in the crypto space are significantly increasing their Bitcoin holdings. The bank predicts that Bitcoin may surpass $120,000 in the second quarter to set a new historical high point, and predicts that by the end of 2025, the price of Bitcoin will soar to $200,000, a historical milestone.