Bitcoin hits a new peak - price surpasses $124,000 for the first time
In the past year, Bitcoin has experienced a significant surge, with its value increasing nearly 32% since the beginning of 2025. This digital currency's meteoric rise has propelled the overall digital currency market to a staggering $4.2 trillion (approximately €3.6 trillion), with Bitcoin continuing to dominate the landscape.
The latest price increase has seen Bitcoin reach an all-time high of $124,517 (approximately €106,410) on the Bitstamp trading platform. Analyst Timo Emden of Emden Research attributes this surge to lower capital market interest rates across the Atlantic acting as a catalyst for stronger demand for cryptocurrencies, as Bitcoin doesn't pay market interest.
The growth of Bitcoin is also being driven by institutional investors. Large entities, including pension funds and corporations, are increasingly allocating capital to Bitcoin via ETFs and direct balance sheet purchases, significantly boosting demand and price momentum.
The U.S. government's stance towards cryptocurrencies has also played a pivotal role in Bitcoin's growth. The crypto-friendly approach under President Trump has been one of the strongest price drivers for Bitcoin. Trump's directive to agencies to review the guidelines for responsible management of these assets and revise them to include alternative investment options has been well received by the crypto industry. Trump even referred to himself as the "crypto president."
Regulatory adjustments have also contributed to Bitcoin's growth. The SEC's approval of multiple Bitcoin ETFs in January 2024 catalysed an influx of institutional money. Further, the 2025 executive order under President Trump and the formation of a digital asset regulatory working group have enhanced regulatory clarity and fostered a crypto-friendly environment, reducing systemic risk and supporting higher valuations.
The weakening U.S. dollar due to Federal Reserve rate cuts and rising inflation internationally has driven investors to seek alternative stores of value such as Bitcoin. This macroeconomic instability alongside historically low production supply post the recent halving in 2024 is contributing to upward price pressure.
The expected rate cut by the Fed in September and the continued growth of Bitcoin's price beyond $124,000 indicate that this digital currency is set to continue its impressive growth trajectory.
Sources:
- CoinDesk
- Bloomberg
- Reuters
- CNBC
- The Wall Street Journal
What could be the potential reasons for the continuing growth of Bitcoin, reaching an all-time high of $124,517? It might be due to lower capital market interest rates across the Atlantic, driving stronger demand for cryptocurrencies, such as Bitcoin, which doesn't pay market interest. Furthermore, the growth could be attributed to institutional investors like pension funds and corporations who are increasingly allocating capital to Bitcoin via ETFs and direct balance sheet purchases, significantly boosting demand and price momentum.
