Bitcoin has recently reached new all-time highs, steadily surpassing $110,000 and once again confirming its dominant position in the cryptocurrency landscape. Despite uncertainties related to U.S. politics, macroeconomic turbulence, and geopolitical unrest, Bitcoin has managed to maintain a solid bull trend, reaching $123,000 and fueling expectations for further all-time highs (ATH).
Summary
The growing role of institutional investors
One of the main drivers behind the rise of Bitcoin is the growing interest from institutional investors, who increasingly consider the cryptocurrency as a valid alternative to traditional assets, capable of offering protection against inflation and portfolio diversification. Concrete examples include the massive purchase of Bitcoin by companies like Tesla, which had already invested about 1.5 billion dollars in 2021, and Strategy, which in recent years has accumulated over 150,000 BTC.
In recent months, other listed companies have raised substantial amounts of equity capital to be allocated to the purchase of Bitcoin. An emblematic example is the European “1%” plan of The Blockchain Group, which aims to raise 300 million euros, as well as Gamestop, which has relaunched with a fundraising of as much as 1.75 billion dollars. Furthermore, the newly established company American Bitcoin, a majority subsidiary of Hut 8 founded in collaboration with Eric and Donald J. Trump, which focuses exclusively on mining and the development of strategic Bitcoin reserves, further demonstrates how institutional support is growing rapidly.
Bitcoin ETF: the BlackRock effect and institutional confidence
The recent approval of ETF (Exchange Traded Funds) on Bitcoin, particularly in the United States, has significantly facilitated access to the crypto market. The ETFs continue to record significant inflows, supporting Bitcoin and confirming the positive market sentiment. A prime example is the rapid success of IBIT by BlackRock, a Bitcoin-based ETF that quickly reached 80 billion dollars in assets under management, marking a historic record, which represents a clear signal of the growing institutional confidence in the future of this cryptocurrency.
Inflation, interest rates, and stablecoin: the macroeconomic scenario
Finally, a possible interest rate cut by the Fed could provide further bull momentum to the entire sector. The global macroeconomic context, characterized by persistent inflation and expansive monetary policies by central banks, has led more and more investors to consider Bitcoin as an effective hedge against the loss of value of traditional currencies.
In this context, the sector of stablecoin is showing signs of strong growth, as evidenced by the record debut on the stock exchange of Circle, with a capitalization exceeding 30 billion dollars, and the possibility of a stock exchange listing for Tether, with estimates even surpassing 500 billion dollars in market cap. The recent GENIUS Act legislation approved in the USA, supported by Treasury Secretary Scott Bessent, forecasts explosive growth for the sector, estimated to exceed 2,000 billion by 2028.
Bitcoin as a strategic asset in modern portfolios
According to BlackRock Investment Institute, this favorable regulatory scenario in the United States is significantly contributing to the mainstream adoption of digital assets, making Bitcoin and other cryptocurrencies increasingly relevant drivers of risk and return within investors’ portfolios, rather than mere speculative assets.
BlackRock itself highlights that the Genius Act consolidates the role of stablecoins as a key payment method for the future of finance, identifying them as one of the great forces capable of driving returns. Stablecoins, primarily anchored to the US dollar, could further strengthen their dominance in global markets, although the growing demand for stablecoins may have a limited impact on short-term US Treasury yields. In any case, Bitcoin remains identified as a distinct return driver.
Cryptocurrencies: the risks to monitor between regulation, volatility, and competition
The future prospects remain generally positive, while acknowledging the presence of significant risks that investors should consider carefully. Among these, strict regulatory restrictions represent a concrete threat: any stricter regulations adopted by influential governments could severely limit access or the freedom to use Bitcoin and other cryptocurrencies, negatively impacting the market. The intrinsic volatility also remains a concern, as rapid price changes could severely test less prepared investors.
Another significant risk comes from the increasing competition of other emerging cryptocurrencies, first among them Ethereum, which is attracting substantial capital thanks to dedicated ETFs and increasingly widespread decentralized applications. Arthur Hayes has indicated a price target for Ethereum of 10,000 dollars in the medium term, confirming the growing attractiveness of this cryptocurrency compared to Bitcoin.
Furthermore, the development of the centralized finance sector (CeFi), with innovations such as the tokenized stocks of Robinhood and strategic agreements, like the one recently announced between Crypto.com and Emirates, could profoundly influence the distribution of capital and the internal balances in the crypto market.
The impact of the halving cycle: what to expect by 2026
Finally, it is important to remember the cyclical nature of the Bitcoin price (a halving approximately every 4 years), and its deflationary nature, with a maximum quantity set at 21 million units, which continues to generate bull pressure after each halving that decreases the supply available on the market.
Figure 3 – Bitcoin Halving. Source: BitBo
The current halving cycle could reach a critical point in 2026, a year that investors should monitor with particular caution, as it is potentially subject to a phase of strong price correction after a period of sustained growth.
Strategies for investing in Bitcoin in 2025 (and beyond)
For investors interested in the crypto world, a prudent and informed approach remains fundamental. It is advisable to avoid impulsive decisions, adopt gradual accumulation strategies, and diversify the crypto portfolio.
The new highs of Bitcoin offer a strongly positive signal for the entire sector, but caution remains crucial to successfully address future challenges and make the most of the opportunities offered by this dynamic and rapidly evolving market.
Until next time and happy trading!
Andrea Unger