Bitcoin surged to a historic milestone on Thursday, climbing above $124,000 in early Asian trading, fueled by a combination of favourable United States legislation, strong equity market performance, and increased institutional interest.
The flagship cryptocurrency briefly touched $124,500, breaking its previous all-time high set in July, before retreating slightly in subsequent trading. This rally marks a continuation of Bitcoin’s bullish momentum in 2025, underscoring renewed investor confidence in digital assets.
The rally comes on the heels of record highs in the US stock market. On Wednesday, the S&P 500 and the tech-heavy Nasdaq Composite both closed at fresh peaks, bolstered by investor optimism over economic resilience and technology sector gains. Analysts say the strong performance of equities is spilling over into the cryptocurrency space, encouraging risk-on sentiment among investors.
A significant driver behind Bitcoin’s surge has been regulatory changes in the US under President Donald Trump, a vocal advocate for the cryptocurrency industry. The Trump administration recently moved to end restrictions that discouraged banks from providing services to companies considered “high reputational risk,” a classification that had historically included many crypto firms.
According to Samer Hasn, senior market analyst at XS.com, this policy reversal has created “a period of highly favorable fundamentals” for the crypto market. He added that Trump’s growing involvement in the digital asset space could lead to accelerated integration of cryptocurrencies into the US financial system and the removal of further regulatory barriers.
Beyond government policy, the rally is also being driven by aggressive buying from institutional investors and corporate giants. Reports indicate that both Trump’s media group and Tesla, led by billionaire Elon Musk, have recently added significant amounts of Bitcoin to their holdings. Such high-profile endorsements have historically sparked wider market enthusiasm, encouraging retail investors to follow suit.
Large individual holders, often referred to as “whales,” are also playing a role by accumulating more coins, reducing available supply on exchanges and driving prices higher.
Bitcoin’s sharp rise has reignited discussions around the cryptocurrency’s role as both a speculative asset and a potential hedge against inflation. With global economic uncertainties, some investors are turning to Bitcoin as a digital store of value, much like gold.
The rally has also had a ripple effect on other major cryptocurrencies, with Ethereum, Binance Coin, and Solana posting notable gains in the wake of Bitcoin’s surge. Crypto market capitalization now exceeds $3.4 trillion, reflecting robust investor interest across the sector.
While the bullish momentum is undeniable, analysts caution that the crypto market remains highly volatile. Rapid price swings are common, and regulatory developments outside the US—particularly in Europe and Asia—could impact market dynamics. Still, the current sentiment suggests that Bitcoin could test new highs if buying pressure continues.
For now, market watchers are eyeing the $125,000 level as the next key psychological barrier. If breached and sustained, it could set the stage for an even stronger upward trend heading into the final quarter of 2025.