Why Is Crypto Up Today – May 20, 2025?

In a significant turn, all top 100 coins per market cap saw a notable upswing, largely driven by institutional adoption and regulatory developments. The cryptocurrency market capitalization has increased by 1.2% over the past 24 hours, now standing at $3.46 trillion. The total crypto trading volume is at $124 billion at the time of writing.

Why Is Crypto Up Today – May 20, 2025: Crypto Winners & Losers

In a sharp reversal from yesterday, when all top 10 coins per market cap were red, all have turned green today. Recording the highest decrease a day ago, Ethereum (ETH) is the best performer today. It’s up 7.1% to the price of $2,544. Its daily high is $2,693.

Solana (SOL) is the second-highest gainer, having risen 4.8% to $168.

At the same time, Bitcoin (BTC) has appreciated 3%, now trading at $105,498. This is a pullback from the day’s high of $106,518.

Notably, not a single one of the top 100 coins saw their prices decrease in this time frame. Three recorded double-digit increases, becoming the day’s best performers.

Aave (AAVE) is up 24.3% to the current price of $267.23, while Curve DAO (CRV) increased by 11% to the price of $0.7346.

Lastly, Virtuals Protocol (VIRTUAL) is up 10%, now changing hands at $1.97.

Overall, the current upswing in the crypto market seems to be the result of a beneficial combination of institutional involvement, regulatory developments, macroeconomic factors, and technical market indicators.

More specifically, following a week of intense negotiations, the US Senate has voted to advance the GENIUS Act, which would regulate stablecoins at the federal level. However, a final vote to pass the act will likely have to wait until after a federal holiday on 26 May.

‘Current Price May Be a New Baseline, Not a Transient Bubble’

James Toledano, Chief Operating Officer at Unity Wallet, commented on the similarities between the current bull run and BTC’s boom in November 2024, especially given the proximity to the all-time high. “There are definitely echoes of similarity,” he argues.

In May 2025, Bitcoin increased from $94,000 to over $106,000, which was a 13% rise. Yes, “November’s bull run was far more energetic.” The price went up by 37% in a month, from $70,000 to $96,000.

Nonetheless, “many of the driving forces appear to be the same with both periods marked by rapid price increases and strong institutional interest,” Toledano says.

The current rise is fueled by the cooling tariffs, which helped ease market chaos and increased ETF inflows. Also, “unlike the largely sentiment-driven November rally, the current uptrend seems to be underpinned by tangible institutional adoption and policy support, suggesting a more sustainable growth trajectory.”

According to Toledano, speculative elements remain, but the combination of institutional adoption and favorable economic conditions “suggests that the current price levels may represent a new baseline rather than a transient bubble, but as always anything is possible in crypto.”

Levels & Events to Watch Next

Since yesterday, Bitcoin has surpassed the weekly high of $104,400, previously seen in December 2024, and it has hit a new weekly high of $106,518.

As BTC broke briefly through the $106,000 level, it now needs to be seen if it’ll be able to grab and hold it for long enough to be propelled further up. On the other hand, a support level is at $103,870, followed by the next significant one at $102,250, and then $97,000. The latter one is critical as a previous consolidation zone.

Moreover, the Fear and Greed Index has decreased from 71 to 68. This suggests optimistic sentiment, signaling investor confidence and willingness to take risks. This is typically the result of rising prices, increased buying, and high trading volumes. However, greed can also signal overvaluation and precede corrections.

Moreover, the market is boosted by investors entering it. Notably, US Banking giant JPMorgan will soon let clients buy Bitcoin. CEO and Bitcoin critic Jamie Dimon said on Monday: “We are going to allow you to buy it. We’re not going to custody it. We’re going to put it in statements for clients.”

Additionally, there have been consistent spot ETF inflows supporting the price rise. According to a May 19 report by digital asset manager CoinShares, digital asset investment products recorded a fifth consecutive week of inflows last week, with $785 million. With this, the year-to-date inflows increased to $7.5 billion.

On the one hand, this amount surpassed the previous high of $7.2 billion from early February. On the other hand, it “also fully recovers the near $7 billion of outflows experienced during the February–March price correction.”

Meanwhile, the US Justice Department has opened an investigation into the recent security breach at Coinbase Global. Depending on the course of the investigation, it may have an impact on the market. What kind of impact, remains to be seen.

Quick FAQ

Both the crypto market and the US stock markets posted gains due to the increase in investor optimism and macro elements overall. While the crypto market turned green across the board since yesterday, the S&P 500 went up 0.088%, the Nasdaq-100 increased by 0.089%, and the Dow Jones Industrial Average rose by 0.32%. That said, investors seem slightly more confident in the crypto markets today, especially as the US dollar has weakened.

The current rally seems to be supported by significant institutional interest, as well as encouraging regulatory developments and macroeconomic conditions. Still, liquidity and market sentiment remain a concern, signaling continued caution.

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