Bitcoin price rallied to a new all-time high above $109,000 on May 21, propelled by a sudden thaw in global trade tensions and expectations of looser monetary policy. The cryptocurrency traded around $109,369 on late trading, extending a rally that lifted prices about 6% in the past week. This move follows a breakthrough above $100,000 earlier in May, as investors responded to signs that President Trump’s global tariff offensive might be easing. Trade Truce Sparks Global Rally The immediate catalyst was a surprise 90-day “tariff truce” between the United States and China . On May 12, officials in Geneva announced a pause on new levies and sharp rollbacks of existing duties, slashing reciprocal tariffs by roughly 115 percentage points to about 10%. Global markets leaped on the news: stock futures and Asian equities jumped, and commodity prices rallied on hopes of a broad trade-war détente. Bitcoin investors also took notice. Analysts note that the tariff pause removed the risk of ‘sudden re‑escalation’, which had been weighing on risk appetite. In other words, as the trade conflict eased, risk assets like Bitcoin rallied without the overhang of fresh tariffs. Liquidity Surge and Institutional Flows Broader macroeconomic conditions have added fuel to the crypto rally. Central banks worldwide are signaling easier policy. In the U.S., futures markets are now priced at multiple rate cuts this year, and a weaker dollar has coincided with renewed growth in global money supply. Meanwhile, the European Central Bank has maintained an accommodative stance, and the Bank of Japan continues massive asset purchases, reinforcing the loose global liquidity backdrop. China’s central bank has also begun pumping cash into markets. Such ample liquidity typically lifts risk assets, and Bitcoin has benefited accordingly. At the same time, institutional investors have been pouring into crypto. Hedge funds and asset managers have funneled record sums into spot-Bitcoin ETFs and futures, betting on higher prices. Leading figures in the crypto industry have expressed firm bullish conviction. Former PayPal and Meta executive David Marcus tweeted , “ the bull case for Bitcoin has never been stronger,” citing easier custody solutions at banks and competition from sovereign and corporate buyers. Changpeng Zhao, co-founder of Binance, echoed this optimism. Analysts even project Bitcoin could reach around $150,000 if regulatory conditions remain favorable. Bitcoin Market Outlook Looking ahead, analysts are divided on just how far Bitcoin can climb. Some have raised year-end targets above $130,000. Jamie Coutts of Real Vision warns that the relentless expansion of fiat money means Bitcoin “may push…above $132,000” by late 2025. Source: X Even major banks have revised their models: Standard Chartered’s crypto research team recently suggested that a $120,000 second-quarter price target might be “too low”. On the other hand, many caution that the rally could pause or correct if global liquidity peaks or regulators tighten. Bitcoin’s price historically follows four-year “halving” cycles tied to new coin issuance, and some forecasters see the current monetary easing lasting through 2025. Those forces could cool Bitcoin’s momentum if central banks eventually reverse course or inflation spikes. For now, however, the rare alignment of easing trade tensions and abundant liquidity, coupled with growing institutional adoption, has set the stage for one of crypto’s strongest rallies.
