Bitcoin soars to a brand new all-time excessive

Welcome to the Canadian Crypto Observer. Monetary journalist and writer Aditya Nain affords perspective on market-moving headlines to assist Canadian traders navigate the cryptocurrency market.

May bitcoin proceed to rise?

On Could 22, bitcoin (BTC) reached a brand new all-time excessive of $111,681 (all figures in U.S. {dollars} until in any other case specified). This was probably pushed partially by the continued “promote U.S.” pattern, with uncertainty round Trump-led coverage pushing traders in the direction of non-U.S. property, together with gold and bitcoin.

May it go greater? Or is the crypto social gathering over for this market cycle? Right here’s some helpful perspective.

What’s the Worry and Greed Index telling us?

When BTC first neared the important thing psychological threshold of $100,000 in December 2024, two indicators prompt that the market could possibly be overheated: the CMC Worry and Greed Index and Google search quantity for “bitcoin.” This time, those self same indicators give us cause to imagine that BTC might rise additional.

Beneath is the one-year chart of the CMC Worry and Greed Index (multi-coloured line), overlaid with the value of BTC (gray line). You’ll discover that when BTC neared $100,000 in December, the index was at “excessive greed,” suggesting a market prime. However now, with BTC at a brand new all-time excessive, the index continues to be in “greed” territory—which signifies that the market will not be overheated but.

What can Google search tendencies inform us about BTC?

Information from search question device Google Developments suggests to me that BTC might rise additional. Usually, near or at new market highs, search curiosity in “bitcoin” on Google goes by the roof, because it did, for instance, in March 2021 and November 2024. Nevertheless, we’re not seeing that burst of search curiosity simply but. The search quantity for BTC—what number of instances “bitcoin” was looked for on Google and its related platforms like YouTube—is lower than half of what it was in December. 

The chart under exhibits that curiosity in bitcoin peaked in December 2024 (coinciding with the market prime at the moment). This peak is represented numerically by a rating of 100. In distinction, the curiosity in bitcoin as of Could 27 sits at a really low rating of 34.

To reiterate: I wouldn’t be shocked if BTC rose additional, as a result of the BTC market often tops out when it’s over-hyped, when it’s making common headlines, and greed is excessive. For now, we’re not seeing proof of that based mostly on the Worry and Greed Index or the Google search tendencies information.

Ethereum bounces again

Ethereum (ETH) has risen from the ashes—up 62%, from $1,416 to $2,700, in underneath two months in April–Could 2025. The second-largest cryptocurrency by market capitalization, ETH was starting to lose favour with traders, having lagged behind BTC, Solana (SOL) and plenty of different crypto property on this bull market. Nevertheless, as is commonly the case in investing, simply if you assume an asset is doomed, it shoots up—and ETH did, rapidly.

What’s behind ETH’s resurgence?

It could possibly be creator Vitalik Buterin’s strategic plan to degree up Ethereum’s technological infrastructure, in response to power underperformance and the emergence of a number of opponents akin to Solana. Nevertheless, should you’re bearish on ETH, you could assume that the present run-up is only a contra play—that’s, traders piling into ETH as a result of it was deeply undervalued. 

I believe it’s protected to say the jury continues to be out on whether or not Ethereum survives and thrives or will get eaten up by newer, extra agile crypto opponents within the subsequent 5 to 10 years.

Regardless of the largely unfavourable information surrounding Ethereum over the previous 12 months, there’s one main success story on the intersection of conventional finance (TradFi) and crypto. It’s known as BUIDL—a tokenized cash market fund by BlackRock that runs largely on the Ethereum blockchain. It’s a solution to maintain U.S. Treasuries by a crypto token.

BlackRock’s BUIDL fund hits $2.88B, with 95% on Ethereum

As of Could 18, BlackRock’s tokenized fund BUIDL holds $2.88 billion in property, with $2.68 billion (95%) tokenized on Ethereum, based on information from https://t.co/hPAEaqWKKv. The remaining property are unfold throughout Aptos,…

— CoinNess International (@CoinnessGL) Could 19, 2025

As of Could 29, the BUIDL market cap stood at a powerful $2.92 billion—up over 600% from its launch in March 2025. May Ethereum be the popular blockchain for the tokenization of conventional and real-world monetary property?

Will stablecoin regulation within the U.S. increase crypto progress?

One thing taking place within the U.S. could possibly be huge for crypto. The federal authorities is attempting to manage U.S.-dollar stablecoins—cryptocurrencies which might be steady in worth as a result of they’re pegged to the U.S. greenback. For instance, one Tether (USDT, the biggest stablecoin available on the market) is supposed to be equal to at least one U.S. greenback. 

Via the bipartisan Guiding and Establishing Nationwide Innovation for U.S. Stablecoins (GENIUS) Act, regulators hope to impose necessities on stablecoin issuers, akin to how a lot U.S. foreign money they need to hold in reserve to again up their coin, in the end guaranteeing that regulated stablecoins will preserve their worth. As of now, the Act is on the ground of the Senate. As soon as it’s handed by the Senate and the Home, it would want President Trump’s signature. Whereas it’s not but a finished deal, some type of stablecoin regulation might probably be legislation as quickly as subsequent 12 months.

Stablecoins are a key a part of the crypto ecosystem as a result of they operate as on and off ramps for traders. For instance, if you wish to purchase $1,000 of BTC however not , you could purchase $1,000 of USDT and convert that incrementally to BTC. If you need to promote your BTC, you could convert it to USDT as a substitute of promoting it for U.S. {dollars}. Consider stablecoins because the “money” of the crypto ecosystem. They’re so essential that two of the ten largest cryptocurrencies by market cap are stablecoins: USDT (third-largest at $152 billion) and USDC (seventh-largest at $61 billion), as of Could 27, 2025. In reality, nearly unbelievably, in April 2025 stablecoins accounted for over 50% of on-chain transaction quantity, because the desk under exhibits.

For central banks and governments, an unregulated stablecoin ecosystem poses important threat. For those who’re holding a crypto token that claims to be equal in worth to the U.S. greenback, then that token must be backed greater than adequately by U.S. {dollars}—in any other case, it’s simply an empty promise. A well-regulated stablecoin ecosystem would probably increase investor confidence in crypto, inviting extra folks into the market. For instance, if an investor knew that USDT functioned inside a well-regulated ecosystem, they’d be extra prone to convert their BTC to USDT and again, based mostly on their outlook on the crypto market. An additional advantage could possibly be the potential to pay for real-world issues together with your stablecoin, thereby decreasing the necessity to transfer out of the crypto ecosystem to make a purchase order.

Crypto value swings are widespread

Cryptocurrencies together with Bitcoin, Ethereum, Solana, XRP and others are speculative and extremely risky property which might be topic to important value swings. Even stablecoins will not be “protected” if not backed adequately by real-world property. 

Investing in bitcoin and different crypto cash carries important market, technological and regulatory dangers. Put money into crypto provided that it aligns together with your funding objectives, time horizon and threat profile, and keep vigilant about crypto scams.

Learn extra about crypto:

• Is now time to purchase bitcoin?
• Will bitcoin crash in 2025?
• Bitcoin tops USD$100,000 for the primary time
• Value of bitcoin hits new excessive after Trump victory, and extra crypto information
• Methods to shield your crypto from hacks

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