The price of bitcoin has hit a new all-time high, reaching above $118,000 (£87,000) for the first time in its history.
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?
Why is bitcoin’s price surging?
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.”
How high could bitcoin go?
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.”
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