Bitcoin reaches all-time high of USD $112,000 on ETF inflows

The value of the cryptocurrency market rose by 10.3% in May, setting a new all-time high for Bitcoin at USD $112,000, according to Binance Australia's latest monthly crypto market report.

The increase marks the second month in a row in which the crypto market posted double-digit growth. This performance was buoyed by a combination of substantial Exchange Traded Fund (ETF) inflows, growing institutional demand, and increased uptake of corporate cryptocurrency holdings.

ETF inflows reach new heights

During May, spot Bitcoin ETFs in the United States attracted USD $5.25 billion in net inflows, marking the highest monthly total since November 2024. This strong inflow was cited as a primary factor in pushing Bitcoin's value to its highest recorded price of approximately USD $112,000.

The momentum, however, saw a brief reversal at the end of May, when the market experienced USD $962 million in ETF outflows over just two days—ending a five-week streak of positive inflows and representing the largest short-term decrease since February.

"Seeing Bitcoin hit an all-time high off the back of these inflows shows just how much mainstream capital is now shaping the market," Mr Quinn-Kumar said. "It also underscores just how strong a link there is between ETF investment and the price movement. ETF flow data is increasingly becoming a key barometer for gauging market sentiment and its likely trajectory."

Corporate treasuries accumulate Bitcoin

Publicly traded companies continued to increase their Bitcoin holdings in May. The report indicates that 116 firms collectively held 809,000 BTC, more than twice the total recorded a year earlier. Notably, over 100,000 BTC were added in the past two months, with the club of publicly listed Bitcoin holders expanding by over 25 firms.

The uptick in corporate adoption was attributed in part to regulatory developments, specifically new 2025 U.S. accounting rules that enable more transparent crypto valuations on corporate balance sheets. This regulatory shift was identified as a factor that removes significant barriers for companies considering Bitcoin as a reserve asset.

While Bitcoin remains the primary digital asset for most corporations, some firms began to diversify into other cryptocurrencies, including Ethereum (ETH), Solana (SOL), and, in specific cases, XRP. Industry analysts project this diversification trend to continue, with some estimates suggesting that corporate Bitcoin treasuries could surpass 1 million BTC by 2026.

Investment activity was not limited to Bitcoin alone. The Decentralised Finance (DeFi) sector outperformed Bitcoin with a 19% increase during May, as traders cautiously rotated capital into sectors viewed as offering tangible utility. Conversely, areas such as gaming and Layer-2 protocols saw less robust performance over the same period.

"More businesses are recognising Bitcoin as a strategic long-term asset that complements traditional reserves," said Mr. Quinn-Kumar. "Whether through direct treasury holdings or selective exposure to innovative sectors like DeFi, we're seeing growing confidence in the lasting value of crypto. This is especially true as clearer regulations and improved reporting standards provide greater transparency and legitimacy, reinforcing the idea that Bitcoin has the utility to serve as a legitimate investment vehicle."

Australian trading trends

In Australia, traders maintained a strong preference for established cryptocurrencies. The top five most-traded assets on Binance Australia remained consistent, led by Bitcoin, then Ethereum, Solana, XRP, and BNB. According to the report, this highlights continued confidence in "blue chip" digital assets among local investors.

There was, however, evidence of growing interest in utility-focused altcoins. Dogecoin (DOGE) rose two rankings among the most-traded assets, attributed chiefly to increased investor attention following a spot DOGE ETF proposal by Swiss firm 21Shares. Chainlink (LINK) also entered the top ten, buoyed by high-profile DeFi partnerships such as integrations with JPMorgan and expansion onto the Solana blockchain.

Mr. Quinn-Kumar observed that this balance between established investment vehicles and newer, utility-based assets is shaping a more discerning approach among Australian traders.

"Australian users are still anchored to the major cryptocurrencies, but they're increasingly exploring altcoins that offer real-world utility or are making waves in the market," said Mr. Quinn-Kumar. "That balance between reliability and innovation signals a maturing local market as they seek substance and long-term value."

The report indicates that institutional and corporate adoption trends, together with regulatory developments, are supporting the momentum currently observed in both global and domestic cryptocurrency markets.