Bitcoin (BTC-USD) briefly flirted with record territory on Tuesday, rising as much as 1.7% to $110,572 before easing backjust shy of its May 22 peak of $111,980. The digital asset is still up about 16% year-to-date, buoyed by expectations of a friendlier regulatory stance from the Trump campaign and optimism over improving trade dynamics with China. That shift in sentiment is nudging investors back into risk-on mode. Ether joined the rally too, jumping as much as 8% during the session.

But this isn’t just retail hype. A deeper undercurrent is at playone that’s being driven by real institutional flows. Circle Internet Group Inc.’s IPO is the latest example. Priced at $31, it surged to $107 in just days, showcasing strong appetite for crypto-aligned equities. Meanwhile, BlackRock’s IBIT ETF just hit $70 billion in assets under managementmaking it the fastest ETF ever to reach that mark. Michael Saylor’s Bitcoin playbook is being replicated across the street, and it’s pushing the narrative forward. There’s a drumbeat of announcements, said Eric Jackson of Emj Capital. Sovereigns, treasuries, fundsthey’re all leaning in.

At the policy level, things could get even more interesting. A new wave of stablecoin legislation is in motion, aiming to bring more clarity to crypto regulation. If passed, it could hand institutional investors the regulatory green light they’ve been waiting for. Jake Ostrovskis at Wintermute sees this building momentum as a key force behind Bitcoin’s recent price action. While short-term volatility remains, the structural trend is harder to ignore. A larger share of the market is starting to treat Bitcoin not as speculationbut as a legitimate asset class vying for a place next to gold.

This article first appeared on GuruFocus.