Bitcoin Crosses the $110000 Mark for the First Time

Bitcoin crossed the $110,000 mark for the first time on Thursday (May 22), rising as much as 2.2 per cent

Bitcoin broke through the crucial $110,000 threshold for the first time on Thursday, further heightening the rally in the cryptocurrency.

Early Asian trading saw a rise of 2.2 percent in Bitcoin, reaching as high as $110,038.8 by 00:18.

However, by 00:39, it pulled back to $109.405.4, showing a 0.6 percent gain for the past four hours.

The progress of a stablecoin bill in the US Senate, which may bring more regulatory clarity, is boosting traders' confidence in the cryptocurrency's future.

This is also driving the rally, along with strong demand from Michael Saylor's firm, which holds over $50 billion in Bitcoin, and other major buyers.

"It has been a slow motion grind into new all-time highs," said Joshua Lim, global co-head of markets at FalconX, in an email to Bloomberg.

"There’s no shortage of demand for BTC from Spac and Pipe deals, which is manifesting in the premium on Coinbase spot prices."

A wave of lesser-known small-cap firms and newly formed public companies backed by crypto giants are buying Bitcoin, using tools like convertible bonds and preferred stocks to fund their purchases.

One example is Twenty One Capital, a new company backed by Tether, SoftBank, and a Cantor Fitzgerald affiliate, aiming to follow the same model as Michael Saylor's Strategy.

Meanwhile, a subsidiary of Strive Enterprises, co-founded by Vivek Ramaswamy, is merging with Nasdaq-listed Asset Entities to create a Bitcoin-focused treasury firm.