Bitcoin’s May surge to a record high was likely fueled by institutional capital rotation out of stablecoins, according to Bybit data.
Institutional investors, rather than retail traders, appear to have been the primary force behind Bitcoin’s sharp price rally in May 2025, according to a new asset allocation report released by top crypto exchange Bybit.
Bybit’s H1 2025 report shows that as of May, Bitcoin is still the biggest single asset held by all users — both institutional and retail — making up about 31% of their holdings.
According to the report, which looked at Bybit’s active users, stablecoins like USDT and USDC make up an even larger share — around 33% for all users — which suggests investors might still be holding some cash on the sidelines, expecting prices could dip before they jump back in.
Bybit is currently the third-largest centralized crypto exchange in terms of 24-hour trading volumes, per data from CoinGecko.
Driving Force
The report also reveals that institutional traders slashed their stablecoin holdings by 14% between April and May, with an estimated 6% allocated to Bitcoin (BTC), 6% to Ethereum (ETH), and 1% to Solana (SOL). The move closely aligned with Bitcoin’s run to a new all-time high of $111,970 on May 22.
“Itʼs clear that institutions have deployed substantial capital in May 2025, which highlights their bullish view of Bitcoinʼs short-term price movements,” Bybit wrote in the report.
In contrast, retail investors were more cautious, reducing their stablecoin holdings by just 2% in May. Most of their reallocation went into Ethereum rather than Bitcoin, the report found.
For comparison, Bybit’s Q3 2024 data painted quite a different picture. Institutional investors significantly increased their stablecoin holdings during that period.
Per the report, in August 2024, investors were holding a much larger share in stablecoins — about 45.26% — at a time when Bitcoin was trading near $60,000. A few months later, by the end of the year, Bitcoin surged past the $100,000 mark.
