Why the Crypto Market Is Up Today? Bitcoin Hits $112K, Ethereum Price Jumps 5.5%

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The crypto market is buzzing with excitement as Bitcoin smashed through the $110,000 mark for the first time, pushing even higher toward $112,000 in early trading. Ether joined the rally, jumping 5.5%, as optimism spreads across the crypto market.

The overall sentiment is clearly bullish, with rising institutional interest, regulatory progress, and geopolitical uncertainty acting as fuel for this impressive rally. Meanwhile, global markets, especially in Asia, are feeling the pressure from rising US bond yields and political risks, keeping all eyes on Washington as key economic data rolls in.

Bitcoin Bull Run : BTC Price Bounces Back Strong

Bitcoin has surged over 30% from its April low near $74,000, which came right after Trump’s “Liberation Day” tariff announcement. The recent rebound gained momentum following a May 12 U.S.-China trade deal that paused most tariffs for 90 days. Meanwhile, poor U.S. bond auctions and falling stock indexes pushed investors toward alternative assets like Bitcoin, reinforcing its role as a hedge.

According to Santiment, Bitcoin reached a fresh milestone at $109,500, beating its previous high set on Trump’s inauguration day. Institutional players like BlackRock, Fidelity, and Ark Invest have poured billions into BTC, with BlackRock’s spot ETF IBIT now holding over $20B. Because many retail traders remained cautious, the market avoided excessive hype, giving Bitcoin a clean runway to soar.

Santiment also warned that the brief surge in FOMO around $109.5K might cause a short-term dip. However, if the excitement cools quickly, Bitcoin could still aim for $115K–$120K soon.

Why is Bitcoin Price Up Today?

BTC Markets CEO Caroline Bowler says the rally is being driven by better infrastructure for institutions and improving regulatory clarity. That’s reflected in major legislative moves like the GENIUS Act, which just passed a procedural vote in the U.S. Senate. The bill sets clear rules for stablecoins, helping legitimize them in the eyes of big investors. Andrei Grachev from DWF Labs called it a turning point, noting it could help stablecoins move from being a crypto “experiment” to a global standard for digital money.

Texas Takes a Bold Step

Meanwhile, Texas is making headlines with the passage of SB 21, a bill to create a state-managed Bitcoin reserve. It passed the Texas House in a strong 101–42 vote and is now waiting for Governor Abbott’s signature. With a GDP of $2.7 trillion, Texas could soon become the second U.S. state, after New Hampshire, to officially hold Bitcoin as a strategic asset, an idea that once seemed radical but now feels forward-thinking.