Bitcoin reached a new all-time high on Thursday, climbing to $111,862.98, surpassing its previous peak. The cryptocurrency’s surge was partly attributed to increasing investor interest in alternatives to US assets. This marked a 3.3 percent increase from Wednesday’s closing value, according to data from Reuters.
Bitcoin enthusiasts celebrated Bitcoin Pizza Day with significant excitement, marking the anniversary of the first-ever real-world Bitcoin transaction. The milestone reinforced Bitcoin’s position in the market, leaving the cryptocurrency community optimistic about its future potential.
Analysts Predict Further Growth
Analysts are predicting that Bitcoin’s recent gains might be the beginning of an even larger upward trend. Geoff Kendrick, Head of Digital Assets at Standard Chartered, projected that Bitcoin could reach $500,000 by 2029. Kendrick cited growing institutional and government interest in Bitcoin, especially through indirect exposure via vehicles like MicroStrategy. According to Kendrick, the quarterly 13F data, which measures institutional demand, will be a key indicator in validating this prediction.
Read More: Happy Bitcoin Pizza Day: Major Milestones in Cryptocurrency History
Global Liquidity Could Boost Bitcoin’s Value
Simon Peters, Market Analyst at eToro, identified several key factors that could drive Bitcoin’s price further. Peters pointed out the increase in global liquidity, which has historically mirrored Bitcoin’s price movements. With the US facing credit rating downgrades and a significant amount of debt needing refinancing, demand for newly issued US Treasuries could be impacted. If demand fails to meet expectations, the Federal Reserve might have to intervene, potentially leading to an increase in Bitcoin’s price, as seen in previous cycles.
Peters also emphasized that lower interest rates and relaxed financial conditions in developed nations, such as China, the UK, and Australia, have historically favored crypto asset prices. As these countries implement measures to ease financial stress, the demand for cryptocurrencies like Bitcoin could rise in response to the broader economic climate.
Supply and Demand Dynamics Favour Bitcoin
The growing demand for Bitcoin is being driven by both retail investors and institutional players. Large publicly traded companies are increasingly adopting Bitcoin treasury strategies, purchasing billions of dollars’ worth of the cryptocurrency. Additionally, pension funds and sovereign wealth funds are increasing their exposure through spot ETFs. This rising demand, paired with Bitcoin’s fixed supply, is intensifying the upward pressure on its price.
Analysts have noted that Bitcoin is increasingly being seen as a safe-haven asset. The cryptocurrency’s popularity continues to rise, especially as traditional financial markets undergo significant shifts. This perception is bolstered by Bitcoin’s consistent outperformance relative to other asset classes, particularly in times of economic uncertainty.
US Treasury Yields Impact Bitcoin’s Performance
The rise in US Treasury yields, with the 30-year bond yield briefly surpassing 5 percent this week, has been a critical factor in Bitcoin’s price surge. The downgrade of the US sovereign debt rating by Moody’s and ongoing debates in Congress about a new tax bill have increased uncertainty in traditional financial markets. Bitcoin’s rising value amidst these developments suggests that it is becoming an attractive alternative to traditional assets.
Also Read: Top 6 Best Crypto Coins to Invest In Now Before the Next Bull Cycle Begins
While Bitcoin reached new highs, major US stock indices, including the S&P 500, experienced a decline. The S&P 500 lost 1.61 percent on Wednesday, while Bitcoin has surged 18 percent year-to-date. This performance has further solidified Bitcoin’s position as an outperforming asset in 2025, defying the trends seen in traditional markets.
Bitcoin as a Portfolio Diversifier
Institutional and retail investors are increasingly viewing Bitcoin as a diversifier in their portfolios. FXStreet strategist Jordi Martínez noted that Bitcoin is being considered as a hedge against macroeconomic uncertainty. As traditional financial markets face challenges, more investors are flocking to Bitcoin, viewing it as a valuable tool to protect against volatility in the broader economy.
With growing institutional adoption and an increasingly favourable macroeconomic environment, Bitcoin’s price could continue to rise. Analysts remain optimistic about Bitcoin’s future, with some projecting it could reach as high as $500,000 by 2029. As demand continues to rise and supply remains limited, Bitcoin’s journey to these record-breaking levels could be just beginning.
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