Bitcoin Hits $106,800 as Realized Cap Breaks $900 Billion and GENIUS Act Clears Senate Hurdle

Bitcoin charges toward its all-time high on May 20, 2025, as a confluence of regulatory breakthroughs and historic on-chain milestones fuels one of the strongest rallies of the year. The world’s largest cryptocurrency trades at $106,791, less than 2% away from the $109,000 record set in December 2024, while the U.S. Senate advances landmark stablecoin legislation that could reshape the entire digital asset landscape.

TL;DR

• Bitcoin reaches $106,791, closing at $107,664 — just 2% below its December 2024 ATH of $109,000
• Bitcoin Realized Cap surpasses $900 billion for the first time in history, signaling massive capital inflows
• The U.S. Senate advances the GENIUS Act, a bipartisan bill regulating stablecoins and allowing banks to issue them
• Short-term holders see a 71% improvement in profitability, the second-largest positive shift on record
• Three institutional whales place $1 billion in BTC long positions on Hyperliquid with 40x leverage

Bitcoin Approaches Record Territory

Bitcoin trades firmly above $106,000 on May 20, continuing a six-week rally that has seen the asset appreciate approximately 40% from its recent local lows. According to CoinMarketCap data, BTC records an intraday high of $107,844 before settling at $107,664, reflecting a 1.98% gain over the previous 24 hours. The last weekly close of $106,500 marks the highest in Bitcoin’s history.

Glassnode’s weekly on-chain report highlights that only four trading days have ever recorded a higher daily closing price. The consolidation zone between $102,000 and $105,000, which had capped price action for two weeks, now acts as support rather than resistance. The broader market capitalization rises 3.29%, indicating renewed investor confidence across the digital asset ecosystem.

Realized Cap Breaks $900 Billion

Perhaps the most significant milestone of the day comes from on-chain data. Bitcoin’s Realized Cap — the cumulative value of all coins at the price they were last moved on-chain — exceeds $900 billion for the first time. This metric has grown 4.2% over the past month alone, reflecting meaningful capital entering the network rather than speculative price appreciation alone.

The Realized Cap milestone underscores that investors are storing immense value within Bitcoin. The $1 trillion threshold now looms as the next psychological and fundamental target. Capital inflows have accelerated as both retail and institutional participants increase their exposure, with the Crypto Fear and Greed Index registering 69, firmly in “Greed” territory.

GENIUS Act Advances in the Senate

The U.S. Senate delivers a watershed moment for crypto regulation on May 19-20, advancing the GENIUS Act — a bipartisan bill designed to establish clear rules for stablecoin issuance. The legislation would allow traditional banks, including major institutions like JPMorgan Chase and Bank of America, to issue their own stablecoins, effectively bridging the gap between traditional finance and digital assets.

Circle’s Chief Strategy Officer Dante Disparte describes the bill as a pathway to modernizing payment systems, noting that stablecoins enable cross-border transactions “at the speed of the internet.” USDC, Circle’s stablecoin, already has $61 billion in circulation, demonstrating the demand for dollar-denominated digital assets.

However, concerns remain. Duke lecturer Lee Reiners warns that problems in the crypto sector could spill into the traditional banking system through stablecoins, particularly in a scenario where mass redemptions force rapid Treasury bond sales. Industry advocates counter that the bill provides essential regulatory oversight that currently does not exist.

Short-Term Holders Experience Historic Profitability Shift

Glassnode data reveals that short-term holders — investors who have held Bitcoin for less than 155 days — experience one of the most dramatic profitability improvements in the asset’s history. The percentage of short-term holder supply in profit increases by 71% over the past 30 days, marking the second-largest positive shift ever recorded.

The Short-Term Holder MVRV ratio recovers from 0.82, indicating unrealized losses, to 1.13, signaling a return to profitability. This shift drives increased spending activity, with realized profits reaching $747 million per day and a cumulative $11.4 billion over the past 30 days.

Institutional Whales Place Billion-Dollar Bets

Three institutional whales on the decentralized exchange Hyperliquid collectively open $1 billion in long Bitcoin positions using 40x leverage. The aggressive positioning reflects growing institutional confidence that Bitcoin will break through its all-time high and establish new price discovery in the coming weeks.

Why This Matters

The convergence of Bitcoin approaching its all-time high, the Realized Cap breaking $900 billion, and the Senate advancing comprehensive stablecoin regulation signals a maturing market that is increasingly integrated with traditional finance. The GENIUS Act, if signed into law, would create a regulated framework for stablecoins that could bring billions in new capital into the crypto ecosystem through banks. Meanwhile, on-chain metrics show that the current rally is backed by genuine capital inflows rather than leveraged speculation alone. With Bitcoin Pizza Day on May 22 — marking 15 years since Laszlo Hanyecz paid 10,000 BTC for two pizzas — the contrast between those humble beginnings and today’s $900 billion Realized Cap provides a striking reminder of how far the network has come.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry significant risk. Always conduct your own research before making investment decisions.