Bitcoin (BTC) achieved its highest-ever daily closing price at $106,830 (UTC), marking a significant bullish milestone amid increased investor activity. The rally was largely fueled by strong inflows into spot exchange-traded funds (ETFs) as bond market turmoil raised fiscal health concerns for major economies, especially the U.S. This environment prompted investors to seek alternative assets like Bitcoin and gold.
Trading data reveals a persistent buying pressure from U.S.-based investors, evidenced by the Coinbase Bitcoin Premium Index remaining positive. Market watchers are closely monitoring the next critical resistance at $110,000. Data from Deribit’s BTC options market suggests market makers hold a large net negative gamma exposure at this level, which could amplify price moves and potentially accelerate the rally if Bitcoin breaks through this barrier.
However, Bitcoin has faced challenges closing above $106,000 daily in 2025, with eight failed attempts. Despite brief price spikes above this threshold, sellers have pushed it back, highlighting a psychological resistance level. Recent developments such as Moody’s downgrade of the U.S. sovereign rating to Aa1 and the U.S. Senate advancing the GENIUS Act for stablecoin regulation have contributed to volatility and mixed market sentiment.
Institutional interest continues to grow, with BlackRock’s IBIT vehicle holding over 633,000 BTC, approximately 3% of Bitcoin’s total supply, indicating sustained structural demand. JPMorgan’s decision to allow wealth clients to buy Bitcoin directly also underscores increasing institutional adoption.
Technical analysis suggests a need for a daily close above $107,500 to trigger a move toward all-time highs near $109,224 seen in January. Meanwhile, volatility remains near historical lows but may increase as May 30 options expiry approaches with significant open interest clustered around $110,000 and $115,000 strikes. Macro factors such as Federal Open Market Committee policy statements and legislative progress on digital asset bills will play critical roles in Bitcoin’s near-term price trajectory.