Bitcoin’s value soared to a new all-time high of $109,760.08 on May 21, 2025, continuing its impressive rise. Positive investor sentiment and shifting global economic conditions fueled the cryptocurrency’s growth. At the time of reporting, Bitcoin was trading at $108,117, a 1.1% increase.
The surge is linked to improving economic conditions, including reducing trade tensions between the United States and China and Moody’s downgrading U.S. sovereign debt. These factors have encouraged investors to look beyond the U.S. dollar and seek alternatives like Bitcoin. This price surge marks a 50% recovery from Bitcoin’s lows in April, showcasing strong momentum, institutional support, and favourable regulatory changes in the U.S.
Antoni Trenchev, co-founder of Nexo, a digital asset trading platform, commented that Bitcoin’s recent performance signals that the digital currency has entered “blue sky territory,” with a boost from institutional interest and a favourable regulatory environment in the U.S.
Bitcoin’s price movement also mirrors trends in technology stocks, which have benefited from increased risk appetite. Since April, the Nasdaq index has risen by 30%. The weakening U.S. dollar has also made Bitcoin more attractive to investors seeking a hedge against fiat currency devaluation.
A key driver behind Bitcoin’s rise is the growing participation from traditional financial institutions. JPMorgan’s CEO, Jamie Dimon, known for his scepticism toward Bitcoin, announced this week that the bank would allow clients to buy Bitcoin. In another sign of growth, Coinbase, a major cryptocurrency exchange, was recently added to the S&P 500 index.
However, the cryptocurrency market still faces challenges. Coinbase recently revealed an ongoing U.S. Department of Justice investigation regarding a data breach. Despite this, Trenchev remains optimistic about Bitcoin’s future, predicting that the cryptocurrency could reach $150,000 by 2025, although risks due to macroeconomic uncertainty and potential volatility still exist.
Meanwhile, Ether, the second-largest cryptocurrency, did not follow Bitcoin’s upward trend, experiencing a slight dip of 0.5% to $2,513.
