Bitcoin breaks through $110,000 to hit a record high! Will the next stop be $120,000 or a callback?

In the early morning of May 22, Beijing time, the price of Bitcoin (BTC) broke through the $110,000 mark, reporting $110,199.90 per coin, with a daily increase of 1.13%, setting a new historical high. This can't help but trigger heated discussions in the market: Why can Bitcoin continue to climb to this key price? Under the multiple resonances of institutions, enterprises and on-chain data, does it have the potential to continue to hit $120,000 or even higher? Or will it face pullback pressure in the short term?

Enterprise layout and institutional investment become the main engines of the rise

Bitcoin's breakthrough is inseparable from the increase in more and more enterprises and institutions. This month, Metaplanet, a Japanese listed company, announced the issuance of $21.25 million interest-free convertible bonds, all of which will be used to purchase Bitcoin, demonstrating its firm stance on the "long-term Bitcoin strategy". Since announcing its transformation in 2024, Metaplanet's stock price has risen more than 30 times, becoming the "Bitcoin flagship stock" in the Asian crypto market.

MicroStrategy in the United States is also continuing to expand its holdings. As of now, it has held more than 230,000 BTC, with a market value of more than $25 billion. More and more companies choose to include Bitcoin in their balance sheets, which substantially reduces the market circulation and strengthens Bitcoin's financial role as a "corporate strategic asset".

At the same time, the spot Bitcoin ETFs of financial giants such as BlackRock and Fidelity continue to attract money. Data shows that the entire ETF market has currently absorbed more than US$50 billion in capital inflows, providing long-term and stable buying support for BTC prices.

On-chain data analysis: Smart funds continue to pour in, and the coin holding structure is stable

On-chain data shows that the current round of rise has a solid foundation, which is different from the short-term speculative market in the past:

The proportion of wallet addresses that have held coins for more than 1 year has risen to 68%, indicating that investors' faith has strengthened and the long-term holding trend is obvious;

The balance of Bitcoin on exchanges has continued to decrease, with an outflow of more than 30,000 BTC in the past two weeks, which means that the market circulation supply is continuing to tighten;

The number of active addresses and the amount of on-chain transfers continue to grow, reflecting that retail and institutional investors are active at the same time, and capital inflows are showing a healthy trend;

The average transaction amount and the concentration of coin holdings have increased, indicating that a large number of "smart funds" are continuously deployed, rather than retail investors chasing high speculation.

These data show that it is not bubbles but structural changes that support the current rise in Bitcoin prices - the synergy of reduced supply and increased high-quality funds.

Risk Warning and Future Outlook

Although both fundamentals and on-chain data show a strong market, short-term risks still need to be paid attention to:

Technically, BTC prices have deviated far from the moving average in the short term, and there is a possibility of a technical correction;

Macroeconomic policy risks still exist, such as the uncertainty of the Federal Reserve's monetary policy or the tightening of crypto asset regulation in some countries, which may bring periodic fluctuations.

However, from a long-term perspective, Bitcoin is gradually completing the role transformation from a "speculative tool" to a "digital reserve asset". With the normalization of institutional entry, the diversification of corporate holdings, and the continuous development of the on-chain ecosystem, Bitcoin's financial status has become increasingly stable.

The next stop is $120,000?

Why can Bitcoin break through $110,000?

In the final analysis, it is the triple support of structural improvements in supply and demand, the continuous entry of enterprises and institutions, and healthy data on the chain. This also makes the market full of expectations for whether Bitcoin can hit $120,000 or even higher targets.

In the future, whether the price of Bitcoin can rise further will depend on the global financial market environment, the direction of regulatory policies and the continued evolution of market sentiment. But what is certain is that Bitcoin is gradually getting rid of the "speculative label" and moving towards the core position of the global mainstream financial market.