Bitcoin has shattered expectations by reaching a record high of US$110,724 (AU$171,825) on Thursday morning.
This marks a sharp rebound from its recent low of US$76,273 on 9 April, posting over 43% growth.
Experts say the rise is fuelled by renewed optimism, macroeconomic shifts, and strong institutional inflows.
Trump’s Pro-Crypto Stance Fuels Renewed Interest
Optimism soared after Donald Trump pledged to support crypto and create a US reserve.
While initial excitement faded due to tariffs and market instability, momentum has returned with bipartisan support for regulation.
Bitcoin surpassed its previous high set during Trump’s January inauguration, signalling revived investor confidence.
Bitcoin makes a sharp rebound from its recent low
US Legislation Sparks Optimism Across the Market
Markets responded positively to US lawmakers backing a bill to regulate stablecoins.
Bitcoin, while not pegged to the dollar, has benefited from broader legislative clarity.
Investors are embracing the shift, seeing regulation as a pathway to greater legitimacy and stability.
Analysts Project Strong Long-Term Growth
Edward Carroll from MHC Digital Group expects to hit US$160,000 by Q4 2025 and US$1 million by 2030.
“We firmly believe BTC is increasingly decoupling from its correlation to risk assets,” Carroll stated.
He highlighted strong performance despite weak equity markets and US Treasury auction results.
“With a fixed supply dynamic and growing demand driving the price higher, we see significant upside,” he added.
Institutional Interest Boosts Bitcoin Inflows
Reece Hobson from eToro Australia called surge “a significant milestone”.
He attributed the rise to US$2.8 billion in ETF inflows in May, pushing total ETF assets above US$122 billion.
“Institutions like Strategy now hold over 506,000 Bitcoin,” Hobson noted.
He also cited global liquidity growth and a weakening dollar amid US-China tensions as key drivers.
BTC Markets CEO Notes Shift in Investor Behaviour
Caroline Bowler, CEO of BTC Markets, said institutional demand is replacing speculative surges of previous cycles.
“Today’s demand is driven by institutional-grade infrastructure and stronger regulatory clarity,” she said.
“US-listed ETFs are seeing strong inflows, particularly BlackRock’s IBIT with over US$600 million recently,” she explained.
Bitcoin’s market capitalisation now sits at US$2.17 trillion, making it one of the world’s largest liquid assets.
“Macro conditions are also playing a role,” she added, citing easing US-China tensions and improved risk appetite.
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Local Market Sees Rising Interest in Regulated Access
Australian investors are showing increasing interest in regulated digital asset platforms.
Bowler noted demand for “secure, compliant ways to engage with digital assets” is growing.
She added that the foundations for broader adoption are in place, with sustained growth expected.
Bitcoin Outpaces Global Giants by Market Value
Mena Theodorou, co-founder at Coinstash, said Bitcoin’s growth “marks a major milestone in the asset’s evolution”.
He noted the crypto has now surpassed companies like Amazon and Alphabet in market value.
“Bitcoin is now the fifth-largest asset in the world by market cap,” Theodorou said.
Bitcoin’s AU$3.36 trillion valuation places it among the most valuable assets globally.
Ethereum Sees Gains But Trails Bitcoin’s Surge
Ethereum, the world’s second-largest crypto, reached US$2,600 after rising 77% from its 9 April lows.
However, it remains 47% below its record US$4,892 from 16 November 2021.
eToro’s Hobson observed that “Ethereum’s underperformance this cycle is striking”.
He added that altcoins typically rally after Bitcoin’s dominance peaks, suggesting potential upcoming shifts.
Market Cautions Remain Amid Growing Optimism
Experts continue to warn investors about crypto volatility and potential risks.
While Bitcoin’s performance is impressive, its speculative nature remains a concern for cautious investors.
Despite optimism, users are advised to proceed with informed strategies.
Bitcoin Pushes Through $100,000 Milestone
Bitcoin broke the $100,000 threshold on 8 May following a trade deal between the US and the UK.
This symbolic level marked a turning point, reinforcing bullish sentiment among investors and institutions.
The crypto continues trading near its all-time high, holding strong above US$109,000.
The crypto’s rise reflects a combination of favourable policies, investor sentiment, and macroeconomic shifts.
