Crypto Market Rallies on Bitcoin Surge, Hits $3.48T
Crypto Market Rises 2.5% as Bitcoin Sets Record High Above $111K
The cryptocurrency market is trading higher today, May 22, with total market capitalization climbing 2.5% to $3.48 trillion, its highest level since February. The rally is driven by renewed investor optimism, technical breakouts, and Bitcoin’s surge to a new all-time
high of $111,888.
Crypto market performance May 22. Source: Coin360
Bitcoin Leads Market Momentum
Bitcoin (BTC) led the charge with a 7.3% intraday move from $104,200 to $111,888, lifting the broader market with it. Ether (ETH), Cardano (ADA), and Solana (SOL) also posted gains, following Bitcoin’s momentum.
The rally follows easing trade tensions between the U.S. and China, and a recent Moody’s downgrade of U.S. debt, prompting investors to view Bitcoin as a hedge and store of value.
Additionally, the U.S. Dollar Index (DXY) continues to weaken, now down 9.84% from its January high, which further supports bullish sentiment for non-dollar assets like crypto.
Institutions Entering the Market
Institutional interest is also rising. JPMorgan CEO Jamie Dimon recently confirmed the bank will offer Bitcoin access to its clients, marking a notable shift from previous skepticism and reflecting traditional finance’s growing involvement in digital assets.
24-hour market performance of top 10 cryptocurrencies, May 22. Source: CoinMarketCap
Short Liquidations Add Fuel
Data from CoinGlass shows a wave of short liquidations is amplifying the market’s gains. In the last 24 hours, over $495 million in positions have been wiped out, with $300 million from short bets.
A massive $6.36 million BTC/USD short position on Bybit was the largest single liquidation, mirroring past liquidation-driven rallies, such as the one on Nov. 6, which pushed crypto market cap up by $356 billion.
These liquidations have triggered a short squeeze, further accelerating price movements and pushing Bitcoin and altcoins higher.
DXY daily chart. Source: TradingView
Bull Flag Breakout Validates Rally
The total crypto market cap (TOTAL) confirmed a bull flag breakout on May 20 when it broke above the $3.27 trillion resistance, aligning with the 50-week simple moving average (SMA).
TOTAL is now approaching the critical $3.5 trillion resistance zone. A strong breakout above this level could send the market cap toward $3.84 trillion, the projected target of the flag pattern — a 17% rise from current levels.
The Relative Strength Index (RSI) has also surged from 44 to 70 in the last 48 hours, indicating a significant increase in bullish momentum.
Total crypto liquidations. Source: CoinGlass
However, a close below $3.35 trillion could trigger a retest of the $3.27 trillion level and delay the rally if consolidation resumes.
Outlook
Today’s gains reflect a strong convergence of bullish factors: new all-time highs in Bitcoin, a sharp liquidation of short positions, bullish technical setups, and growing institutional involvement.
If momentum holds, the crypto market may be poised for a broader breakout — with eyes on $3.84 trillion in total market cap and $120,000+ Bitcoin levels in the near term.
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