After hitting a record high of US$111,000 last Thursday, the next resistance level for Bitcoin is projected at $130,000 as the cryptocurrency has shifted from a speculative asset to a "strategic pillar" of the modern economy, say pundits.
Bitcoin's evolution is accelerating as institutional inflows, sovereign adoption and macroeconomic trends are turning it into a foundational layer of global finance, according to a report by Bitkub Exchange.
With net inflow of $19 billion in April, the price is forecast to reach $130,000 later this year.
Bitcoin, the world's largest digital currency by market capitalisation, has climbed 17.5% year-to-date and rebounded more than 47% since plunging to $75,000 on April 7.
That dip was triggered by US President Donald Trump's announcement of sweeping tariff measures, which sent shockwaves through global markets, noted the report.
"Bitcoin has demonstrated a profound transformation over the past quarter, shifting from a volatile speculative asset into a maturing store of value with growing significance in the global economic system," said Merkle Capital, a digital asset advisory regulated by the Securities and Exchange Commission.
Structural tailwinds are rapidly drawing renewed attention from institutional investors, sovereign entities and capital markets worldwide, noted Merkle.
Bitcoin prices have stabilised after contracting 26% from a high of around $109,000 in January this year. By May, Bitcoin had rebounded to $100,000.
"More significantly, Bitcoin's correlation with traditional safe-haven assets such as gold and the S&P 500 has declined, signalling the emergence of a distinct asset class. During recent US tax policy turbulence, Bitcoin behaved independently, reinforcing its position as a digital store of value," said the advisory.
As inflationary pressures persist globally, Bitcoin is gaining traction as an inflation-resistant asset due to its algorithmic scarcity, decentralisation and transparency. These attributes are driving strong institutional demand, particularly through spot Bitcoin exchange-traded funds (ETFs), noted Merkle.
BlackRock's iShares Bitcoin Trust has more than $51 billion in assets under management, attracting continuous inflows for 16 consecutive days, further validating Bitcoin's institutional appeal.
In a policy shift, the US state of New Hampshire passed legislation allowing up to 5% of its public fund reserves to be invested in Bitcoin. Arizona and Texas are evaluating similar proposals as the public and private financial infrastructure ramp up adoption.
Meanwhile, firms such as VanEck and Strive Asset Management have introduced BitBonds -- sovereign debt instruments linked to Bitcoin -- while policymakers close to the Trump administration are promoting a Bitcoin strategic reserve.
MicroStrategy, a US holdings company, remains at the forefront, with its Bitcoin holdings surpassing 555,450, and a target value exceeding $57 billion.
Emerging players such as TwentyOne Capital are mirroring this strategy, aiming to accumulate up to 42,000 coins under a long-term, treasury-first framework.
The broader crypto landscape is also seeing positive momentum. Asset tokenisation is projected to reach $2 trillion by 2028 and stablecoin adoption is laying the groundwork for the digital asset infrastructure.
BlackRock's initiative to tokenise US treasury bonds on blockchain reflects a strategic shift towards digital-native capital markets.
Despite lingering macroeconomic risks including US-China trade tensions and the threat of stagflation, upcoming US rate cuts as well as pro-growth tax policies could ignite further appetite for risk assets, including crypto, in the second half of 2025, noted Merkle.
"Bitcoin is entering its 'adulthood phase' in the financial world. Supported by institutional flows, policy alignment and technological maturity, Bitcoin is well positioned to break through to a new all-time high this year, with key resistance seen at $130,000," said the advisory.
On Thailand's Bitkub Exchange, Bitcoin was traded at 3,605,714.19 baht on May 22, gaining 3.22% in the prior 24 hours. The intraday high was 3,620,000 baht and the low was 3,466,230 baht.
According to Cointelegraph, Bitcoin's new price milestone coincides with turbulence in US equity markets. A weak 20-year treasury bond auction on May 21 led to a spike in bond yields, dragging the S&P 500 down by 80 points in just 30 minutes. Other major US indices ended the day in the red.
Bitcoin ETFs have registered net inflows of $3.6 billion in May, underscoring a resurgence in investor interest. Several firms have ramped up their BTC accumulation, contributing to the latest rally.