Bitcoin Sets New All-Time Highs: Strategic Investment or Momentary Euphoria?

Bitcoin recently hit a new all-time high, surpassing $123,100 earlier this week, amid a surge in interest from institutional investors, who are accumulating in particular through Bitcoin spot ETFs, amid macroeconomic uncertainty and the prospect of pro-crypto laws in the United States.

Since the beginning of the year until early yesterday, Bitcoin had risen by about 25%, after retreating from the highs reached a day earlier. The development reflects the cryptocurrency's growing importance in the current global financial system, according to analysts quoted by the specialized press.

• Pepperstone: "Bitcoin is no longer just a speculative instrument - it is on the border between a digital hedge and a growth asset”

Jeff Mei, the chief operating officer of crypto trading platform BTSE, believes that Bitcoin's rise is being fueled by institutional investors with long time horizons, according to CNBC.

"Trump's trade disputes with the European Union, Mexico and other trading partners may lead to declines, but institutional investors in Bitcoin are probably taking this risk into account and remain convinced that Bitcoin will appreciate in the long term,” he said.

Dilin Wu, a strategist at brokerage firm Pepperstone, believes that the appreciation of technology stocks, which fuels investors' risk appetite, is also supporting Bitcoin's advance.

"In the current asset allocation context, Bitcoin is no longer just a speculative instrument - it sits on the border between a digital safe haven, like gold, and a growth asset, like tech stocks," Wu said, quoted by Business Insider.

• HashKey Capital: "Long-term holders are blocking supply, while global policy clarification has increased investor confidence and stimulated capital inflows”

Investors had been anticipating Bitcoin to hit new highs this year as companies ramp up their cryptocurrency purchases and the US Congress moves closer to passing crypto-related legislation aimed at providing a clearer regulatory framework for the digital asset industry, writes CNBC.

One of the most important bills under discussion is the Genius Act (Guiding and Establishing National Innovation for US Stablecoins Act), which could introduce federal regulations for stablecoins tied to the US dollar, paving the way for private firms to issue digital dollars. Another important law for the industry is the Digital Asset Market Clarity Act, which aims to create a clear framework for the digital asset industry, including defining the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), according to Cointelegraph.

Xu Han, head of the Liquid fund at crypto and blockchain investment firm HashKey Capital, was quoted by CNBC as saying: "Long-term holders are locking in supply, while global policy clarification - particularly around stablecoins and crypto legislation - has increased investor confidence and spurred capital inflows.”

Markus Thielen, CEO of digital asset analytics firm 10x Research, expressed hope that the United States will announce the establishment of a sovereign wealth fund that can purchase digital currencies - an additional factor weighing on the market. He noted that corporate and institutional investors have bought $15 billion worth of Bitcoin through ETFs in the past six to eight weeks, while retail investors appear to have been sitting on the sidelines, writes CNBC.

According to the director of 10x Research, Bitcoin is increasingly perceived, along with gold, as one of the main means of protection against an imminent financial crisis in the United States, which is probably one of the key factors fueling the cryptocurrency's recent growth, according to Cointelegraph.

"The narrative has completely changed: no one is talking about the use cases of blockchain or the technological promises of Bitcoin anymore. Now it is perceived as a macro asset, a form of protection against budget spending that is out of control,” Thielen said, referring to Trump's recently passed law that increased the US debt ceiling by five trillion dollars.

In his view, the recent development is not "just another crypto market rally, but a direct response to the US fiscal situation deteriorating much faster than anticipated,” writes Cointelegraph. 10x Research has a price target for Bitcoin of between $140,000 and $160,000 by the end of the year. However, the biggest risk to the forecast remains the restrictive policy of the US Federal Reserve and possible further interest rate increases caused by the introduction of tariffs, Thielen also said, quoted by CNBC.

• Binance Founder: "Fiat Money Numbers and Printing Have No Limits - Bitcoin Supply is Limited”

Binance founder and former CEO Changpeng Zhao believes that despite the recent surge, investors should still view this as a window for long-term accumulation, Bitcoin.com reports. Zhao highlighted a key difference between traditional monetary systems and Bitcoin's fixed supply.

"Fiat money numbers and printing have no limits - Bitcoin supply is limited,” Zhao wrote on social media late last week, referring to the fact that Bitcoin's supply is capped at 21 million units.

He stressed that price caps should not distract from fundamental market cycles, echoing a view commonly held by long-term investors. "Bitcoin's near-peak is seen by some investors as a signal to wait, while others see it as confirmation of Bitcoin's relevance in an inflation-hit macroeconomic environment,” Zhao commented, supporting the idea that scarcity and decentralization underpin the investment case for Bitcoin.

Gracie Lin, CEO of Singapore-based trading platform OKX, says Bitcoin's role in the global financial system is increasingly important, Reuters writes.

"What we find interesting and are watching closely are the signs that Bitcoin is now being seen as a long-term reserve asset, not just by retail and institutional investors, but even by some central banks. We are also seeing increasing participation from investors in Asia, including family offices and wealth managers. These are strong signs of Bitcoin's role in the global financial system and indicate a structural shift in how it is perceived, suggesting that the development is not just a temporary boost based on enthusiasm,” Lin said.

• Bitwise: "There is a strong demand from corporates and institutional investors, which is being met with limited supply”

Many analysts and investors have optimistic forecasts for the cryptocurrency's price evolution, writes Bitcoin.com.

Matt Hougan, chief investment officer of crypto-focused investment firm Bitwise, predicts that continued institutional demand and limited supply will push the price towards $200,000 by the end of the year.

"There is a strong demand from corporates and institutional investors, which is being met with limited supply,” he told CNBC, quoted by Bitcon.com, adding: "I think it still has a long way to go. I think it can end the year closer to $200,000, so we should get used to this story of new historical records.”

Hougan argues that Bitcoin offers a unique service - allowing users to store value digitally and without reliance on the banking system, an attribute that is becoming increasingly attractive in today's climate marked by geopolitical risks, fiscal uncertainty and rising tariffs.

Geoff Kendrick, global chief digital asset analyst at Standard Chartered Bank, believes that Bitcoin can reach $ 135,000 by the end of the third quarter and up to $ 200,000 by the end of the year.

A wave of capital inflows into Bitcoin-backed ETFs and increased corporate acquisitions are among the elements that will support the appreciation of the cryptocurrency's price, Kendrick believes, along with two other key factors - the possible early departure of Powell from the Federal Reserve and the likely adoption of a stablecoin regulation law in the US. Both of these aspects are expected to create a more favorable environment for digital assets, writes Bitcoin.com.

Beyond the excitement in the crypto industry and optimistic predictions from major financial groups, Bitcoin has been criticized over time by prominent investors.

"Cryptocurrencies have virtually no value and they don't produce anything. They don't reproduce, they can't send you a check in the mail, they can't do anything, and what you hope for is that someone will come along and pay you more money for them later, but then that person has a problem. In terms of value - zero," legendary investor Warren Buffett said a few years ago on CNBC.