Bitcoin has shattered the $100,000 barrier for the first time this year, reaching unprecedented heights as market sentiment rides the wave of the so-called Trump trade. The surge marks a significant rebound from Bitcoin’s February 2024 correction, with analysts pointing to a mix of institutional adoption and macroeconomic factors as key drivers.
Bitcoin price surges past $100,000 for first time in 2025
As of Monday, Bitcoin’s price climbed steadily, buoyed by optimism surrounding President Donald Trump’s pro-crypto policies and a favorable regulatory outlook. The digital asset has now risen over 40% since the U.S. presidential election in November 2024, when crypto-friendly candidates, led by Trump, secured victories. This momentum has propelled Bitcoin from a low of $78,900 in February 2024 to its current milestone, a 21% recovery from that dip and a 28% increase from April’s bottom of $75,000.
Rising demand for crypto as an institutional-grade investment
Analysts attribute Bitcoin’s meteoric rise to growing institutional interest, with treasury companies like Strategy and Metaplanet making massive purchases. Strategy recently approached the limits of its equity program after buying $1.4 billion worth of Bitcoin, while Metaplanet has amassed $481 million in holdings. Steady capital inflows through Bitcoin spot ETFs, managed by Wall Street giants like BlackRock and Fidelity, have further fueled the rally. BlackRock’s IBIT ETF alone hit $50 billion in assets under management, underscoring the rising demand for crypto as an institutional-grade investment.
“Bitcoin’s recent price appreciation is the result of long-term momentum rather than a temporary phenomenon,” said Ryan Yoon, lead research analyst at Tiger Research. “It’s transitioning from a speculative asset to an essential component in institutional investor portfolios.” Yoon highlighted consistent buying from BTC treasury companies and improving on-chain indicators, such as NUPL and MVRV-Z, as signs of a maturing market.
However, sentiment remains mixed following the Federal Reserve’s December 2024 meeting, where interest rates were held steady at 4.25% to 4.50%. While some investors see the Fed’s cautious stance as a stabilizing factor, others warn of potential short-term volatility. “Investors need strategies aligned with their risk tolerance,” Yoon noted, suggesting that Bitcoin’s path to $100,000 could face hurdles without clear policy follow-through from the Trump administration.
The broader crypto market has also felt the ripple effects, with trading volume spiking by $7 billion to $30 billion in a single day. Social media platforms are abuzz with excitement, with posts celebrating Bitcoin’s new all-time high and speculating on its next target—some even eyeing $200,000 by year’s end. Yet, skeptics caution that Bitcoin’s history of volatility, including a brief dip below $99,000 in December 2024, could temper the euphoria.
Bitcoin mining is no longer profitable for many startups, which has caused great concern in the cryptocurrency industry.
As Bitcoin cements its place in financial history, the question now is whether this rally will sustain its momentum or face another correction. For now, the crypto community and institutional investors alike are watching closely, with the $100,000 milestone marking a new chapter in Bitcoin’s wild ride.
