Bitcoin continued its strong upward momentum on Thursday, rising to an all-time high above $111,000. The increase in value was fueled by growing optimism around regulatory developments in the United States and continued inflows into Bitcoin-focused investment products.

As of early Thursday morning, Bitcoin traded at $111,588, up nearly 4% for the day. During overnight trading, it briefly touched $111,834, surpassing its previous high of around $109,000.

This recent movement brings Bitcoin’s total gain in May to over 18%, marking a sharp contrast to the broader declines seen in traditional equity markets.

Why Bitcoin Is Climbing

The surge in Bitcoin’s value is closely tied to progress in U.S. legislation, particularly the movement of the Guiding and Establishing National Innovation for U.S. Stablecoins Act, commonly referred to as the GENIUS Act. The bill, which aims to create a nationwide framework for stablecoin regulation, has advanced in the U.S. Senate and may soon reach a full vote.

Investors have welcomed the bill, seeing it as a crucial step toward establishing legal clarity in the cryptocurrency sector. A well-structured regulatory environment is expected to attract more institutional investors and reduce uncertainty that has previously held back mainstream adoption.

Analysts believe the GENIUS Act could provide the kind of legal support the industry has long awaited, potentially laying the groundwork for future legislation that covers broader digital assets such as Bitcoin.

U.S. Government’s Role Is Expanding

In addition to progress on stablecoin rules, market enthusiasm has also been boosted by the federal government’s growing involvement in digital finance. In March, the administration led by President Donald Trump supported the development of a Strategic Bitcoin Reserve, a move seen by many as an attempt to position the U.S. as a leader in the global digital asset space.

This federal-level attention has reassured investors that the U.S. is moving toward more proactive and structured management of digital currencies, rather than ignoring or over-regulating the sector.

The potential backing of digital assets by the U.S. government adds a layer of legitimacy that appeals to traditional investors, paving the way for broader financial integration.

Institutional Interest on the Rise

Beyond regulatory progress, another major factor behind Bitcoin’s rise is the continued inflow of capital into U.S.-listed spot Bitcoin exchange-traded funds (ETFs). These products have gained popularity in recent months as they allow institutional and retail investors to gain exposure to Bitcoin without directly purchasing or holding the asset.

ETF demand remains steady, suggesting strong ongoing interest in Bitcoin as an investment option. Financial giants such as Fidelity and BlackRock have recently expanded their digital asset offerings, further validating Bitcoin’s role in the financial sector.

Even some previous critics of cryptocurrency are adjusting their views. JPMorgan Chase CEO Jamie Dimon, who once questioned the value of digital currencies, now says the bank will permit clients to buy Bitcoin—marking a major shift in how Wall Street perceives crypto assets.

Coinbase Hits a Milestone

Meanwhile, crypto exchange Coinbase Global Inc. reached a historic milestone earlier this month by becoming the first digital asset company included in the S&P 500 index. This development is being viewed as a sign of growing acceptance of crypto businesses in the traditional financial world.

Coinbase’s inclusion not only highlights its market influence but also gives a boost to the entire crypto sector, increasing its visibility and credibility among conservative investors and financial institutions.

Bitcoin Viewed as a Long-Term Asset

The perception of Bitcoin has gradually evolved from a short-term speculation tool to a serious long-term investment. Stephen Wundke, Director of Strategy and Revenue at digital investment firm Algoz, shared his view that more institutions are now treating Bitcoin as a strategic part of their portfolios.

He emphasized that digital assets are no longer confined to niche markets. Instead, they are becoming a recognized store of value—especially as traditional financial systems face rising inflation and uncertainty.

Stock Markets in Decline, Crypto Gains Strength

While Bitcoin has been climbing, traditional stock indexes have been under pressure. The S&P 500 fell 1.61% on the same day, with major financial stocks like JPMorgan and BlackRock also in the red.

This contrast further highlights Bitcoin’s growing appeal as an alternative investment during times of uncertainty. As investors seek new places to store their wealth, many are turning to assets like Bitcoin that aren’t directly tied to interest rates or government policies.

Looking Ahead

With Bitcoin now trading above $111,000 and U.S. lawmakers making progress on clearer regulations, the crypto market could be entering a new phase of mainstream adoption.

While risks remain—including volatility and potential changes in policy—the growing institutional involvement and regulatory progress suggest that Bitcoin may continue to play a more central role in the financial system.

As attention turns to the next steps for the GENIUS Act and further developments in Washington, investors around the world are keeping a close eye on Bitcoin’s trajectory.