BTC Eyes New Highs as it Celebrates Landmark Day 

While retail investors and hobbyists were no doubt partly responsible for pushing BTC to new highs of $111,814 on Pizza Day, it is far more likely that institutional investors and traders were responsible for the new highs. Notably, the price surged after the US House of Representatives narrowly passed a sweeping budget bill introduced by President Donald Trump. The bill is expected to worsen the government’s annual deficit and has faced criticism for failing to introduce proposed tax cuts. The concerns around the US deficit also led to a spike in bond yields and saw the US dollar lose value against several major currencies. 

This is because a large number of BTC investors see cryptocurrency as anti-establishment and as a possible hedge against the dollar. Whether this is the case, given the large number of institutional investors which now have BTC on their balance sheet, is a different story. 

According to Shaun David, senior analyst at CleaRank, this type of macro uncertainty tends to breathe new life into BTC’s “hedge” narrative. “Bitcoin thrives on uncertainty,” he explains. “It’s no longer just about decentralization or ideology. When markets see fiscal instability or rising debt, crypto—especially BTC—starts looking like digital insurance.” This shift in investor psychology could explain why BTC rallied precisely as the deficit fears grabbed headlines.

BTC Continues its Momentum on the Back of Institutional Investors 

BTC continued its strong positive momentum into this week after a Bank Holiday weekend in major markets, including the US and the UK. This can be attributed to improved sentiment after President Trump announced that he would be postponing his tariffs of 50% on the European Union. 

Another key indicator this week will be Nvidia’s earnings report on Wednesday (28 May), with rumours circulating earlier this month that the tech giant could add cryptocurrency to its balance sheet. Asset manager JPMorgan has also indicated that it will now allow clients to purchase spot Bitcoin ETFs.

Data shows BTCs that Michael Saylor’s Strategy (formerly MicroStrategy)  and other crypto investors such as MetaPlanet have continued to add BTC to their portfolios over the last month – a further positive signal. As CleaRank’s Shaun David puts it, “Retail investors may create the waves, but it’s institutions that control the tide.” The bulk of recent inflows into Bitcoin, he notes, reflect strategic balance-sheet reallocation—something you don’t get from weekend Reddit traders. As Shaun David puts it, “Retail investors may create the waves, but it’s institutions that control the tide.” The bulk of recent inflows into Bitcoin, he notes, reflect strategic balance-sheet reallocation and that’s something you don’t get from weekend Reddit traders.

Bubbles and the Bitcoin Halving

While investors like Michael Saylor are responsible for BTC’s new highs, his strategies have also raised questions about how long this run can continue. His firm (and other imitator firms) primarily rely on borrowing to buy large sums of BTC. Should market conditions arise that these firms are no longer able to raise finances to continue buying, there is a strong chance that BTC prices could tumble. 

There are also questions as to whether investors want BTC on their balance sheets. While companies like MSTR have built their strategies around cryptocurrency, shareholders at tech giants such as Microsoft have made it clear that they do not want Bitcoin as an investment. 

Even without outside news, it’s important to note that Bitcoin pricing typically revolves around its halving cycle. The halving process, which occurs every four years for BTC, sees the amount of new Bitcoin mined reduce the amount of new Bitcoin introduced via the miners on the network. This is necessary for security purposes, but it also makes it more difficult to mine the limited number of Bitcoins which are available. 

Historically, the price of Bitcoin has been at its lowest during this halving (which was last in 2024) and has climbed to new highs in the 12-18 months during the period after the halving.  This isn’t necessarily a doom-and-gloom forecast—just a clear trend in how closely the price seems to be tied to the halving process. 

Even more than other investments, Bitcoin is heavily sentiment-driven as there are no major fundamentals available to peg the cryptocurrency against. While large institutional investors have arguably brought some stability to the market, and BTC may one day be pegged against the US dollar, this uncertainty means it is possible to see large intraday changes and swings of 10% or more within a week. 

This cyclical nature also reflects Bitcoin’s unique market structure. As Shaun David explains, “Unlike stocks or bonds, Bitcoin has no cash flow, no earnings report, and no tangible anchor. It dances to the rhythm of halvings and headlines.” In other words, Bitcoin isn’t driven by traditional fundamentals and rather by sentiment, scarcity narratives, and increasingly, institutional appetite.

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