Institutional and Retail Buyers Fuel Crypto Market Rally

On May 22, 2025, the cryptocurrency market witnessed a significant rally, led by sharp intraday gains in Bitcoin and Ethereum.

Cryptocurrency prices surged on Monday, extending recent gains as renewed institutional interest in Bitcoin and a return of retail traders combined to fuel a sharp rally in the major tokens.

Bitcoin rose as high as $43,188, extending gains from the prior session when the token advanced more than 7% to hit a three-week high. The world’s largest cryptocurrency was trading at around $42,800 by 07:37 ET (11:37 GMT).

Bitcoin has gained about 130% this year, a rally largely driven by institutional investors who are increasingly buying the token as a hedge against inflation and economic uncertainty.

Capital inflows from hedge funds, family offices and crypto-focused investment firms have helped push up Bitcoin prices, which in turn has enticed more retail investors to return to the market.

A rally in Ethereum also contributed to broader gains in the crypto market. The upcoming upgrade to Ethereum’s network, which aims to improve its scalability and reduce transaction costs, is expected to unlock new decentralized finance (DeFi) and non-fungible token (NFT) use cases, thereby driving demand for Ethereum tokens.

The second-largest cryptocurrency was last trading at around $3,300, up more than 5% in the past 24 hours.

Crypto market sentiment has turned bullish, supported by positive technical indicators. Both Bitcoin and Ethereum are trading above key moving averages, a sign of strength and potential for further gains.

On-chain data showed increased activity from long-term Bitcoin holders, which suggests confidence in the current rally. The volume of Bitcoin held on exchanges has also decreased, indicating that investors prefer to hold rather than sell amid price appreciation.

A surge in decentralized finance platforms and NFT marketplaces has generated increased transaction volumes on blockchain networks, contributing to Ethereum’s price strength. This activity not only reflects growing adoption but also strengthens network effects that support token value.

Still, analysts cautioned that the rally could face headwinds from global macroeconomic risks, including geopolitical tensions and potential regulatory shifts.

Traders will be closely watching upcoming economic data releases, such as U.S. inflation figures and macroeconomic reports, as these could influence market volatility and affect traders’ risk appetite.

The broader cryptocurrency market also advanced on Monday, with smaller tokens like Polkadot, Monero and Litecoin all trading in the green.