The digital currency
Bitcoin
has surged to a new record high, exceeding $118,000 (or £87,000) for the first time ever.
This latest surge in value has occurred despite ongoing global economic and political instabilities. Consequently, there’s increasing discussion that investors are starting to see the leading
cryptocurrency
as a secure asset, similar to traditional safe havens like gold.
So, what are the driving factors behind this change in perspective, and what’s next for Bitcoin’s unprecedented rally?
Why is bitcoin’s price surging?
Market enthusiasm appears to have gained traction since President Trump’s April 2nd announcement termed “Liberation Day”, which saw the unveiling of new tariff packages.
While global stock markets declined, Bitcoin experienced a continuous climb, rising from around $70,000 to the current price levels.
Bitcoin’s price was further propelled by an executive directive from President Trump to create a national bitcoin reserve, conceptualized as “a virtual Fort Knox for digital gold”.
Other governments and institutions are exploring Bitcoin as well, which has further validated it and expressed confidence in its long-term potential.
“Bitcoin is being integrated into the core of US national economic strategy – which is the world’s largest economy – as well as corporate treasury policy and institutional portfolios,” Nigel Green, CEO of deVere Group, a financial advisory firm, told
The Independent
.
“The fact that a sitting administration is considering Bitcoin as part of its sovereign reserves is altering the global risk landscape,” Nigel stated. “It not only legitimizes Bitcoin, but also necessitates action from others, including institutions and governments.”
Despite previous large price swings, which still classify Bitcoin as a high-risk asset, it has been trading relatively stably between $100,000 and $110,000 since May.
Bitcoin’s limited supply – only 21 million will ever exist – has
led to comparisons with gold
since its inception in 2009. The recent price stability further strengthens these comparisons.
“Bitcoin is demonstrating its unique position,” according to Roshan Roberts, chief executive of the OKX US cryptocurrency exchange. “With trade tensions escalating and altcoins faltering, institutions are seeing BTC as a macro hedge and an asset class that’s maturing. July may test the markets, but Bitcoin appears ready for it.”
How high could bitcoin go?
These recent gains have spurred bullish sentiment for the second half of 2025 within the industry. A recent survey of cryptocurrency analysts suggests that Bitcoin may reach an average price of $145,167 by year-end.
The poll, released by financial comparison site Finder on Wednesday, gathered predictions from 22 experts who foresee the cryptocurrency reaching $458,000 before the end of the decade.
“Currently, we’re observing a movement toward tangible assets, including Bitcoin. As nations persist in printing fiat currency at unsustainable levels, people will seek alternative methods to preserve value,” stated Josh Fraser, co-founder of the decentralized finance platform, Origin Protocol.
“Gold has served as a primary store of value for centuries, and now Bitcoin is competing as an improved version of gold.”
Other survey participants were less optimistic about Bitcoin’s price future. John Hawkins, a senior lecturer at the University of Canberra in Australia, predicted that Bitcoin could fall to $80,000.
According to Professor Hawkins, Bitcoin’s current price is artificially inflated by the current administration and remains a speculative bubble.
“Bitcoin, and crypto in general, is being supported by the Trump administration, ironically after its initial promotion as an alternative to government-backed currencies and backing from libertarians,” he stated.
“However, it still lacks underlying value, and after 16 years, has failed to achieve its original purpose as a common payment method.”