Bitcoin had a strong start to 2025, gaining 13.5% in the first 30 days. However, despite favorable conditions and a policy shift in the US, its price remains capped at just below $106,000. This article explores the factors contributing to this limitation and the potential for a new all-time high.
Positive Changes for Bitcoin
The Trump presidency has opened new opportunities for banks and hedge funds to custody digital assets. US Federal Reserve chair Jerome Powell has affirmed that banks can engage with crypto customers if they manage risks suitably. The Czech National Bank's decision to include Bitcoin in their reserves further showcases institutional interest.
Impact on Bitcoin's Price
Additionally, announcements such as the Norwegian Central Bank's $500 million investment in MicroStrategy shares underscore positive momentum for Bitcoin. Due to shareholder requirements and ETF restrictions, the fund resorts to using a proxy for Bitcoin exposure.
Challenges to Reaching a New Peak
Despite positive news, Bitcoin remains capped at $106,000. Investors express concern over a global economic slowdown and decreased risk appetite. Even with potential stimulus from central banks to support the economy, short-term investor caution could negatively impact Bitcoin's price. Clearer accounting and risk assessment standards are also essential for further adoption.
In conclusion, while Bitcoin trends positively, overcoming the $105,000 mark will require clearer risk management standards and significant institutional investor engagement.
