Bitcoin’s market cap has soared past $2.2 trillion, overtaking giants like Amazon and Google to become the world’s fifth-largest asset. This landmark achievement, reached on the back of a robust rally, highlights its surging status among traditional investors. With its price hovering around $110,000, bitcoin’s ascent has been marked by buoyant sentiment and vigorous buying activity.
Bullish Sentiment and Derivatives Activity
The buzz around bitcoin isn’t just about its sheer market size; it’s about the undercurrents driving it. As the end of May looms, the options market is abuzz with action. Traders are eyeing high-strike call options for June, some as lofty as $200,000 and $300,000. The end-of-May options expiry next Friday already shows a max pain level at $96,000, indicating that the market is bracing for more upward momentum. This follows a pattern of institutional adoption, which we detailed in Bitcoin Surges Past $94,000 as Institutional Interest and Market Optimism Grow.
“There’s a palpable sense of optimism,” said crypto analyst Laura Shin. “The call options clustering suggests traders are betting on a continued bull run, which is fascinating given the broader economic uncertainties.”
Despite bitcoin’s stellar performance, MicroStrategy (MSTR), the largest corporate holder of bitcoin, hasn’t mirrored this growth. The company has announced a $2.1 billion at-the-market offering of perpetual preferred stock to fund further bitcoin purchases, yet its share price has lagged behind peers.
Institutional Interest and Market Divergence
Institutional interest in bitcoin remains formidable. BlackRock’s iShares Bitcoin Trust (IBIT) saw a staggering $877 million inflow on Thursday, bringing its total to a whopping $47.6 billion. This influx underscores bitcoin’s role as a macro hedge, especially as it diverges from traditional equities. Over the past five days, bitcoin has risen 5%, while the S&P 500 has dipped over 1%. For a deeper dive into the market dynamics, see Bitcoin Surpasses $95K Amid Resilient U.S. Stocks, Analysts Voice Concerns Over Market Perception.
This divergence is drawing attention as investors anticipate Federal Reserve Chair Jerome Powell’s speech on Sunday. “Powell’s remarks could set the tone for next week’s market,” noted economic strategist Anthony Pompliano. “There’s a lot riding on how the Fed’s policies align with current crypto dynamics.”
Looking Ahead: Events on the Horizon
The crypto calendar is packed with significant events. The second round of FTX repayments kicks off on May 30, while the Mezo mainnet launch is tentatively set for May 31. Meanwhile, the U.S. SEC Crypto Task Force will hold a roundtable on “DeFi and the American Spirit” on June 6, an event likely to shape regulatory narratives.
Investors are also keeping an eye on token unlocks, with Optimism (OP) and Sui (SUI) set to release significant portions of their circulating supplies soon. These events could influence market liquidity and trading volumes.
The bitcoin rally, while robust, isn’t without its skeptics. Some analysts caution that the market’s current exuberance might outpace fundamentals. As always, the crypto world is as much about managing risks as seizing opportunities.
Bitcoin’s climb to the fifth-largest asset spot signals a shift in the financial landscape. But whether this trend can sustain—amid evolving macroeconomic factors and regulatory scrutiny—remains a compelling question for investors worldwide.
Source
This article is based on: Crypto Daybook Americas: Bitcoin Market Cap Tops $2.2T as Derivatives, Sentiment Signal More Upside
Further Reading
Deepen your understanding with these related articles:
- Crypto Daybook Americas: All Eyes on Jobs, Fed as Bitcoin Prepares for Breakout Rally
- Bitcoin Traders Brace for ‘Sell in May and Go Away’ as Seasonality Favors Bears
- Bitcoin Traders’ Favorite Lottery Ticket for the First Half of the Year — The $300K BTC Call
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
