Bitcoin Proves Its ‘Digital Gold’ Status with Record Daily Close

- Bitcoin closes at $106,851 on May 20, 2025, marking the highest daily closing price ever - Impact of US Bitcoin spot ETF inflows, increase in futures open interest [Unblock Media] On May 20, 2025 (UTC), Bitcoin closed at $106,851, marking its highest-ever daily closing price. This surpasses the previous high of $99,637 in November 2024, serving as another milestone that demonstrates Bitcoin's market dominance and strong demand. This record is not merely the result of a price surge but is attributed to a variety of factors, including ETF inflows, the expansion of the derivatives market, and changes in the global macroeconomic environment. Notably, institutional funds flowing into US Bitcoin spot ETFs reached $6.9 billion in the past three weeks, signifying a clear movement toward renewed trust and long-term investment by institutions. Additionally, the open interest in CME (Chicago Mercantile Exchange) Bitcoin futures saw a 27% increase in May 2025 compared to the previous month, reaching an all-time high. This is an indicator that reflects both market liquidity and investor sentiment, signaling the growing demand for Bitcoin in the derivatives market. The macroeconomic backdrop is also supportive. Eased trade tensions between the US and China, the Federal Reserve's stance on holding interest rates steady, and an increasing M2 money supply have once again positioned Bitcoin as a hedge against inflation. Strengthened Position as 'Digital Gold' Bitcoin is often likened to "Digital Gold" for its characteristics as a store of value similar to gold. Its supply is strictly limited to 21 million coins, granting it similar scarcity. However, Bitcoin has advantages over gold in terms of mobility and divisibility. One BTC can be divided into up to 100 million satoshis and can be transferred digitally from anywhere in the world. Nonetheless, Bitcoin still differs from gold in its high price volatility and relatively short history. Gold has been used as a store of value for thousands of years, whereas Bitcoin, established in 2009, has only been in existence for about 15 years. Expanding Role in Web3 Infrastructure Bitcoin's rise is also tied to its expanding strategic role in the Web3 ecosystem. Web3 aims for a decentralized internet landscape focused on trustless transactions and user sovereignty. Given its ability to store and transfer value without relying on central institutions, Bitcoin aligns with Web3's financial sovereignty philosophy. It can be integrated into Ethereum-based DeFi (Decentralized Finance) via Wrapped Bitcoin (WBTC), or used in various Web3 applications such as NFT issuance and digital asset ownership management through platforms like Stacks and RSK. The real-time micropayment functionality provided by the Lightning Network, in particular, offers a practical foundation for Web3’s digital content rewards and micropayments. Reassessment of Long-Term Value This new daily closing record goes beyond technical indicators, reinforcing Bitcoin’s potential as a long-term store of value. Despite short-term price volatility and regulatory uncertainties, Bitcoin's fundamental supply structure, network effects, and decentralized nature present a compelling allure for long-term investors. If Bitcoin maintains this growth trajectory, it is likely to secure a more central role in the global financial system.