Bitcoin price all-time high: What's behind crypto's record-breaking rally – and how high could it go?
The latest rally comes despite global economic and geopolitical uncertainty, leading to speculation that investors are increasingly viewing the world's most valuable cryptocurrency as a safe-haven asset like gold.
So what caused this shift in attitude, and where will bitcoin's record-breaking rally go from here?
Market momentum has been building since Donald Trump's 'Liberation Day' announcement on 2 April, when the US president unveiled a broad package of tariffs.
While global stock markets slumped, bitcoin began an upwards trend that took it from around $70,000 to today's prices.
It was boosted by an executive order from President Trump to establish a strategic bitcoin reserve in the US, which he described as 'a virtual Fort Knox for digital gold'.
Other governments and institutions are looking towards bitcoin, which has further legitimised it and signaled long-term confidence.
'Bitcoin is being pulled into the core of national economic thinking in the US – the world's largest economy – and also corporate treasury policy, and institutional portfolios,' Nigel Green, CEO of the financial advisory firm deVere Group, told The Independent.
'When a sitting administration is weighing bitcoin as part of sovereign reserves, that reshapes the global risk framework,' said Nigel. 'It doesn't just legitimize bitcoin, it forces others – institutions and governments alike – to act.'
Massive price fluctuations in recent years means bitcoin is still classed as a risk asset, but since May it has been trading in a relatively tight range between $100,000 and $110,000.
Bitcoin's fixed supply – only 21 million bitcoins will ever exist – has drawn comparisons to gold since it was first launched in 2009, with this recent price stability further bolstering these claims.
'Bitcoin is showing why it's in a class of its own,' said Roshan Roberts, chief executive of the crypto exchange OKX US. 'As trade tensions flare and altcoins stumble, institutions are treating BTC as a macro hedge and a maturing asset class. July will test markets, but bitcoin looks built for it.'
The latest gains have left many within the industry bullish for the second half of 2025, with a new survey of crypto analysts revealing an average price prediction of $145,167 for bitcoin by the end of the year.
The poll, shared by financial comparison site Finder on Wednesday, drew in forecasts from 22 leading figures, who put the cryptocurrency on track for reaching $458,000 by the end of the decade.
'We're currently seeing a flight to hard assets, including bitcoin. As countries continue to print fiat currency at unsustainable rates, people will find alternative ways to store value,' said Josh Fraser, the cofounder of the decentralised finance platform Origin Protocol.
'Gold has been a primary store of value for hundreds of years, and bitcoin now competes as a better version of gold.'
Others surveyed were less optimistic about bitcoin's price trajectory, with John Hawkins, a senior lecturer at the University of Canberra in Australia, predicting it could fall to $80,000.
Bitcoin's current price, according to Professor Hawkins, is being artificially inflated by the current administration and remains a speculative bubble.
'BTC, and crypto in general, is being propped up by the Trump administration, ironically given its initial promotion as an alternative to government-backed currencies and support from libertarians,' he said.
'But it still lacks any fundamental value, and after 16 years, it has still failed to meet its initial aspiration to be a common means of payment.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Insider
33 minutes ago
- Business Insider
Canada would suffer the most economic damage under Trump's tariffs, new Yale report shows
The US's second-largest trading partner may be bearing the brunt of President Donald Trump's tariffs. A new report by The Budget Lab at Yale University shows that the Trump administration's tariffs would shrink Canada 's long-run economy by 2.1% after taking inflation into account, more than the impacts on other countries in the world. This figure is up from the previous estimate of a 1.9% long-term damage to Canada, and doesn't take into account Trump's threats to impose a 35% tariff on Canada from August 1. On Truth Social, Trump published a letter to Canada on Thursday, accusing the northern neighbour of having "financially retaliated against the United States." Though Canada is not subjected to the 10% base tariffs, the northern neighbour already faces a 10% tariff on potash and energy, a 50% tariff on steel and aluminum, and a 25% tariff on automobiles. Canada also exports around three-quarters of its goods to the US. The US-Canada relationship has also suffered due to the tariffs and Trump's repeated comments that Canada should become the 51st state of America. Many Canadian retailers and consumers are turning to locally sources goods over US imports. In response to Trump, Canadian Prime Minister Mark Carney wrote on X that he remains willing to collaborate with Washington, DC, and said he is "building Canada strong." "The federal government, provinces, and territories are making significant progress in building one Canadian economy," wrote Carney. "We are poised to build a series of major new projects in the national interest. We are strengthening our trading partnerships throughout the world." After Canada, the Bugest Lab report shows that the US ranks second in terms of estimated GDP loss due to Trump's tariffs. While China's economy is expected to contract by 0.2%, the US economy is expected to be 0.4% smaller in the long run and 0.8% smaller in 2025 alone. US households, the report says, will also see an income loss of $2,500 due to tariffs. Clothes and footwear would become disproportionately more expensive by as much as 39% in the short run, and prices are expected to stay up in the future.
Business Insider
42 minutes ago
- Business Insider
Stock Market News Review: SPY, QQQ Drop on Renewed Tariff Fears; Powell Resignation Rumors
Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed the Friday trading session in the red as tariff fears returned to the market. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. President Trump has slapped Canada with a 35% tariff, effective August 1. The steep rate is a step above Canada's reciprocal tariff of 26% announced on April 2. 'If Canada works with me to stop the flow of Fentanyl, we will, perhaps, consider an adjustment to this letter,' said Trump. In an X post, Canadian Prime Minister Mark Carney said that Canada would continue its efforts to stop the spread of the deadly drug. Additionally, Trump is considering imposing a blanket tariff of 15% or 20%, up from 10%. He reiterated his belief that the tariffs won't increase inflation and cited all-time highs in the stock market. U.S. yearly tariff revenue has surpassed $100 billion for the first time, with three months still remaining in fiscal year 2025. Tariff revenue was $27.2 billion in June, bringing the yearly total to $113 billion. The monthly average tariff revenue in 2024 was $7.2 billion. On top of that, the U.S. recorded a $27 billion surplus in June compared to $71 billion deficit a year ago. Meanwhile, U.S. Secretary of State Marco Rubio met with Chinese Minister of Foreign Affairs Wang Yi on Friday at the 58th ASEAN Foreign Ministers' Meeting in Kuala Lumpur. Both parties concluded that the meeting was 'positive, pragmatic, and constructive.' They also agreed that a meeting between Trump and Chinese President Xi Jinping would be beneficial for both countries. The U.S. and India are also making trade progress with the U.S. considering a less than 20% baseline tariff on imported Indian goods, according to Bloomberg. India doesn't expect to receive a tariff notification letter and believes that the U.S. will announce the deal, said people close to the situation. The timing of the announcement remains unclear. Finally, Federal Housing Finance Agency (FHFA) Director Bill Pulte issued an eye-catching statement near the market close. 'I'm encouraged by reports that Jerome Powell is considering resigning. I think this will be the right decision for America, and the economy will boom,' said Pulte. However, there are no confirmed reports that Powell intends to resign.
Yahoo
an hour ago
- Yahoo
Trump threatens 35% tariffs against Canada
President Trump on Thursday threatened to impose 35% tariffs on goods from Canada starting next month, hiking import duties on one of the U.S.'s largest trading partners. The president announced the 35% tax in a letter to Canadian Prime Minister Mark Carney posted to Truth Social, citing Canada's alleged "failure to stop the drugs from pouring into our country," as well as retaliatory tariffs Canada has imposed on U.S. goods. The new tariffs are set to take effect Aug. 1, the president said. The move is an escalation from the 25% tariffs on Canadian — and Mexican — imports announced by Mr. Trump shortly after taking office. He later exempted goods covered by the U.S.-Mexico-Canada Trade Agreement, which was negotiated during Mr. Trump's first term. It's unclear whether the same exemption will apply to next month's 35% tariffs. Mr. Trump has sent similar letters to the leaders of more than 20 other countries this week, telling them to expect higher tariffs starting next month. He told NBC News' Kristen Welker on Thursday, "all of the remaining countries" will likely face tariffs of 15% to 20% — higher than the baseline 10% rate that's currently applied to all countries. But Canada is the largest American trading partner to receive a letter so far. Canada was the world's largest buyer of American goods and the third-largest seller of goods to the U.S. last year, according to Census Bureau data. The country bought some $350 billion worth of American goods and sold $412 billion to the U.S. market in 2024. Mr. Trump's letter to Carney says he will "consider an adjustment to this letter" if "Canada works with me to stop the flow of Fentanyl." For months, the president has cast tariffs against Canada and Mexico as a way of getting the U.S.'s two neighbors to stem illegal immigration and fentanyl trafficking, though very little fentanyl appears to enter the U.S. via Canada. Just 43 pounds were seized at the Canadian border last year, compared to 21,100 pounds at the Mexican border. "Throughout the current trade negotiations with the United States, the Canadian government has steadfastly defended our workers and businesses," Canadian Prime Minister Mark Carney wrote in a social media post late Thursday night. "We will continue to do so as we work towards the revised deadline of August 1. Canada has made vital progress to stop the scourge of fentanyl in North America. We are committed to continuing to work with the United States to save lives and protect communities in both our countries." The president also assailed Canada for "retaliat[ing] with its own Tariffs." And he said Canada has imposed other barriers on U.S. imports. Mr. Trump has held on-and-off discussions with Canada for months, but his relationship with the United States' northern neighbor has occasionally been rocky, with U.S. tariffs drawing retaliatory duties from Canada. The president briefly called off all trade talks with Canada last month due to a planned digital services tax that could hit U.S. tech companies, but the talks resumed days later after Carney rescinded the tax. Mr. Trump has also repeatedly mused about annexing Canada, and Carney's party won this year's parliamentary elections after the prime minister ran on a platform of defending Canada from the Trump administration's ambitions. Trump boosts tariffs on dozens of countries The president is sending out this week's spate of tariff letters about three months after first unveiling "reciprocal tariffs" against dozens of countries on "Liberation Day" in early April, along with a 10% tariff on everybody else. The move unnerved financial markets and sparked recession and inflation fears, and Mr. Trump quickly suspended most of the duties for 90 days — aside from the 10% baseline rate — saying he planned to negotiate trade deals. With that 90-day pause set to expire this week, Mr. Trump began sending out letters to dozens of trading partners from Japan to South Africa informing them of their planned tariffs. The U.S. has trade deficits with most countries that received Mr. Trump's letters, though Brazil was also threatened with a 50% tariff despite the U.S. running a trade surplus. The letter cited the prosecution of right-wing former Brazilian President Jair Bolsonaro, which Mr. Trump called a "Witch Hunt." On top of country-specific tariffs, the president has also imposed hefty "sectoral" tariffs on foreign steel, copper and other specific categories of goods. Mr. Trump says the tariffs are necessary to revive American manufacturing and correct trade imbalances. But many economists warn that tariffs lead to higher consumer prices and slower economic growth. Federal Reserve Chair Jerome Powell has said concerns about tariffs are partly to blame for the central bank's decision not to cut interest rates so far this year. Still, the president has stood by his trade strategy. "I think the tariffs have been very well-received," Mr. Trump told NBC News on Thursday. "The stock market hit a new high today." ICE raids in California turn violent after protesters clash with agents One year after Thomas Crooks tried to kill President Trump, here's what's known about him Udemy is Powering Enterprise AI Transformation Through Skills
