Bitcoin Climbs 7% in May: What’s Fueling the Rally in 2025?

Bitcoin Surges 7% in May: How U.S. Crypto-Friendly Policies Are Driving the Market

In May 2025, Bitcoin rose nearly 7%, driven by a wave of crypto-positive developments in the United States. The growing likelihood of stablecoins entering the regulatory framework and ongoing financial uncertainty have prompted investors to turn to decentralized assets like Bitcoin as a hedge.

As Bitcoin hovers around ₩150 million ($105,000), market watchers are asking: Could it break past its all-time high of ₩160 million?

🇺🇸 U.S. Signals Regulatory Embrace of Stablecoins

A major catalyst behind Bitcoin’s price surge is the recent passage of a Stablecoin Regulation Bill by the U.S. Senate. The bill tightens rules on issuance, collateral requirements, and anti-money laundering (AML) compliance. This move effectively signals that the U.S. is ready to legitimize stablecoins within its financial system.

Stablecoins like USDT and USDC serve as the backbone of the crypto economy, offering a 1:1 peg to fiat currencies and enabling seamless digital transactions. The U.S. backing of such instruments enhances trust in crypto as a legitimate asset class, positively affecting Bitcoin and other major cryptocurrencies.

🏛️ Crypto as a Hedge Against U.S. Fiscal Instability

Concerns over the U.S. fiscal deficit and rising inflation have pushed traditional assets like stocks and bonds into volatile territory. This has increased Bitcoin’s appeal as a portfolio diversification tool.

As J.D. Vance, U.S. Vice President, stated at the Bitcoin 2025 Conference in Las Vegas:

“Crypto is a hedge against bad policy, inflation, and unfair regulations. Stablecoins don’t threaten the dollar—they strengthen it.”

Such statements indicate a broader shift in sentiment from U.S. policymakers.

🌍 Trade Policy Volatility Fuels Bitcoin Price Swings

While the general market sentiment is bullish, Bitcoin remains sensitive to U.S. trade policy developments. In late May, Donald Trump’s announcement of a 50% tariff on EU goods triggered a 3.6% drop in Bitcoin price within 24 hours.


However, Bitcoin bounced back after news of a U.S.-UK trade agreement and paused tariff implementations calmed investor nerves. Volatility is likely to remain elevated in the near term as trade talks unfold.

💹 Institutional Interest Grows: Bitcoin Spot ETFs See Record Inflows

Despite price swings, institutional demand for Bitcoin remains strong. According to analytics firm SoSoValue, Bitcoin spot ETFs saw a net inflow of $433 million on May 28 alone.


Even more notably, this marks the 10th consecutive trading day of net positive inflows, totaling $4.26 billion (~₩5.9 trillion). This consistent investment shows that major players are doubling down on Bitcoin amid macroeconomic uncertainty.


#BitcoinNews  #CryptoRegulation  #Stablecoins  #CryptoMarket  #BitcoinETF  

#BlockchainNews  #USCryptoPolicy  #CryptoInvestment  #DigitalAssets  #BitcoinPrice

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