Recently, Bitcoin has reached a new all-time high of over $118,000. This significant event is driven by several factors, including growth in institutional investments and support from the government.
Reasons for Bitcoin’s Rise: Institutional Investments
Over the past six months, professional investors, including hedge funds and corporations, have actively been buying Bitcoin. In particular, the use of spot ETFs allows traditional investors to gain access to Bitcoin without having to hold it physically. This week alone saw $510 million in ETF inflows. Meanwhile, total assets under management in U.S. Bitcoin ETFs stand at $148 billion.
Political Support for Bitcoin
In early 2025, the U.S. government established a Strategic Bitcoin Reserve, which holds over 200,000 BTC, indicating the strategic significance of Bitcoin. Additionally, various politicians' administrations support the regulation of Bitcoin ETFs, which indicates long-term government interest in digital assets.
Changes in the Global Economy
Global economic conditions are also contributing to Bitcoin’s rise. High inflation and instability in traditional currencies lead investors to seek out anti-inflationary assets. Bitcoin is increasingly being seen as ‘digital gold’, possessing a fixed supply and independence from the policies of any one nation.
The newly established historical significance of Bitcoin is linked not only to market sentiments but also to serious institutional and governmental changes, emphasizing Bitcoin's importance as a crucial asset tool in today's financial conditions.
