Last week (May 12 - May 19), BTC was driven by multiple factors to break through $107,000 in the short term, creating a new high since May. After surging and breaking through $100,000 in the previous week, BTC prices remained stable at high levels from the 12th to the 17th, until rapidly rising after 20:00 on the 18th, breaking through the previous consolidation phase's strong resistance level of $104,000 to $105,000. It briefly reached a high of $107,108.62 in the early morning of the 19th, creating the highest weekly closing price in history. Subsequently, BTC prices pulled back to around $105,000 and found support, with the current price at $105,460 and a maximum weekly volatility of 6.34%.
ETH prices moved opposite to BTC, oscillating and pulling back after reaching a high. Influenced by the warming US April CPI data, ETH quickly rose after 20:00 on the 13th, briefly touching a high of $2,738.5, then entered a technical correction in the following days, oscillating widely in the $2,400 to $2,600 range. On the 19th, ETH explored below $2,400 twice but quickly rebounded, currently stabilizing around $2,550, with a maximum weekly volatility of 15.16% (data source: Binance Spot, May 20, 14:50).
As of the close on May 19th, the three major stock indices opened lower but turned higher during the session. US Treasury yields rose and then fell, with prices making a V-shaped reversal. The US dollar weakened, falling over 0.7% and approaching the psychological threshold of 100 points.
Market Interpretation
ETF Capital Inflows and Institutional Trading Activities Propel BTC to Break $107,000
Recently, US-listed Bitcoin spot ETFs have continued to receive capital inflows, with net inflows exceeding $5.6 billion since April and cumulative net inflows of over $41 billion in 2024. These capital inflows directly drove BTC prices higher, breaking through $107,000 with increased volume from the evening of May 18th to the early morning of the 19th, creating a new high for May.
Data shows recent large BTC transfers on-chain, and leveraged fund short positions have decreased, indicating that capital inflows are more from bullish institutional allocations rather than arbitrage trading. BTC net outflows from exchanges have increased, and market selling pressure has eased. The sentiment index has risen from neutral to greedy, suggesting the short-term market may remain volatile but with a strong bias.
Gold Price Pullback Diverts Safe-Haven Funds from BTC
Since April 2025, gold and BTC trends have diverged. Gold rose nearly 30% from the beginning of the year to early May, but from late April, influenced by a strong US dollar, tight Federal Reserve policies, and US-China trade developments, gold prices fell from the mid-May high of $3,394/oz to $3,127/oz, a cumulative decline of about 8%.
In terms of capital, gold ETF inflows have slowed, with even outflows in mid-May. In contrast, BTC spot ETFs have shown significant daily inflows, indicating that institutional safe-haven allocations are shifting towards crypto assets. The US dollar index remains high, with interest rates staying tight, pressuring gold, while BTC's "digital safe-haven" attribute gains more recognition due to policy support and capital inflows.
US April Inflation Data Shows Mixed Performance, Fed June Rate Cut Probability Rises to 91.4%
US April CPI rose 0.3% month-on-month, with core CPI also rising 0.3%, largely in line with expectations, and the market reacted moderately to the short-term data.
Meanwhile, PPI unexpectedly dropped 0.5% month-on-month, the largest decline in five years, reflecting compressed corporate profits and some tariff costs absorbed by companies. Overall, inflation transmission remains incomplete, pushing market expectations for the Fed to maintain rates in June to 91.4%.
Market Highlights
US Senate Advances Stablecoin Regulation Bill, Entering New Regulatory Phase
On May 20, 2025, the US Senate passed the procedural motion for the GENIUS Act with 66 votes in favor and 32 against, marking a key step in stablecoin regulation. The bill aims to establish a federal regulatory framework, clarifying issuers, reserve requirements, and compliance standards, filling regulatory gaps.
RWA Total Value Breaks $22.6 Billion, US Leads Global Tokenization Innovation
As of May 20, RWA total value reached $22.6 billion, growing 5.85% in 30 days, with over 101,854 holders. Wall Street institutions like BlackRock and Goldman Sachs are actively promoting on-chain assets, with US policies also strengthening support, driving continuous expansion of the tokenization ecosystem.
Hong Kong SFC Releases Pledge Service Regulatory Framework, Strengthening Compliance Signals
The Hong Kong Securities and Futures Commission issued a circular, clearly defining regulatory requirements for virtual asset trading platforms providing pledge services. This measure provides a clear compliance path, expected to enhance trust and promote healthy development of Hong Kong's virtual asset ecosystem.
Labubu Craze Drives MEME Coin LABUBU Market Cap Surge
The Labubu fever has spread to the crypto market, with MEME coin LABUBU's market cap soaring from hundreds of thousands to $18 million in a week, with 24-hour trading volume reaching $9.5 million. Previously popular in Thailand, this round of enthusiasm combined with trendy physical merchandise and market sentiment has significantly increased fund attention.
Disclaimer: The above content does not constitute investment advice, sales offer, or purchase offer invitation to residents of Hong Kong SAR, the United States, Singapore, or other regions where such offers may be legally prohibited. Digital asset trading may involve significant risks and instability. Investment decisions should be made after carefully considering personal circumstances and consulting financial professionals. Matrixport is not responsible for any investment decisions based on the information provided in this content.
