preCharge News CRYPTO — Bitcoin surged to a new all-time high Wednesday, briefly reaching $109,500 before settling slightly lower at $106,678.74, according to Coin Metrics. The cryptocurrency’s latest breakout tops its January peak and follows a sharp rebound from April lows, when global macro concerns pushed it down to $74,000.

The rally cooled slightly as Treasury yields rose and equities tumbled, dragging Bitcoin off its intraday peak. Still, the broader trend remains firmly bullish.

“Bitcoin’s new high has been concocted by an array of favorable ingredients in the macro cauldron,” said Antoni Trenchev, co-founder of crypto exchange Nexo.

Inflation Eases, China Tensions Cool—and Bitcoin Benefits

A string of positive macroeconomic signals appears to be fueling the rally. Cooling U.S. inflation, signs of a U.S.-China trade de-escalation, and a recent Moody’s downgrade of U.S. sovereign debt have all contributed to the spike, according to Trenchev.

“We’ve entered an alternate universe,” Trenchev added, “very different from early April when global macro concerns were at their peak.”

Market analysts suggest that investors are embracing risk-on sentiment, favoring assets like Bitcoin and gold, which have both gained from recent liquidity shifts and currency instability fears.

ETF Inflows Cross $40 Billion as Retail and Institutions Pile In

Bitcoin is up 13% in May, a strong rebound following several weeks of sluggish price action driven by tariff uncertainty. Fueling the rally: ETF inflows tracking Bitcoin, which have topped $40 billion, according to SoSoValue.

Remarkably, May has recorded only two days of ETF outflows, signaling growing investor conviction. Analysts view these inflows as a sign that both retail and institutional investors are increasingly treating Bitcoin as a long-term strategic asset.

On-Chain Metrics Show Falling Sell Pressure and High Tether Liquidity

Bitcoin’s strength isn’t just about macro conditions. On-chain metrics confirm the move has technical legs.

Data from CryptoQuant reveals falling Bitcoin inflows to exchanges—a sign that holders are not looking to sell. Meanwhile, Tether (USDT) balances on exchanges have hit record highs, reflecting surging crypto liquidity.

“This environment of high liquidity and low selling pressure is precisely what fuels parabolic moves,” one analyst noted.

Corporate Holdings and Regulation Provide More Tailwinds

Investor appetite also appears to be driven by corporate accumulation and regulatory momentum. Public companies now hold over $349 billion in Bitcoin, a 31% increase since January, according to Bitcoin Treasuries. That amount represents 15% of Bitcoin’s total supply.

Meanwhile, Washington is moving closer to regulating crypto. The Senate this week advanced a bill to establish the first U.S. stablecoin regulatory framework. President Donald Trump has expressed support and wants a crypto bill on his desk by August.

“This isn’t just a price surge—it’s a structural shift,” said one investor. “The groundwork is being laid for Bitcoin to become a central piece of global finance.”

Coinbase Joins the S&P 500, Solidifying Crypto’s Role in Traditional Markets

In a landmark development, Coinbase, the largest U.S. crypto exchange, officially joined the S&P 500 this month. Wall Street has hailed the move as a “watershed moment” that cements crypto’s legitimacy within the broader financial system.

For crypto bulls, the message is clear: Bitcoin isn’t fringe anymore—it’s mainstream. And with $109,500 now in the rearview mirror, the next leg of the journey may already be underway.

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Associated Press, CNBC News, Fox News, and preCharge News contributed to this report.