Bitcoin broke through the $125,000 mark for the first time on Sunday, extending a powerful rally that analysts say could continue into the end of the year.
The world’s largest cryptocurrency jumped 3 per cent in Asian trading to reach $125,245, propelled by institutional inflows, a weaker US dollar, and renewed political support for digital assets in Washington.
The milestone follows months of sustained momentum for Bitcoin and the wider digital asset market, buoyed by growing exchange-traded fund (ETF) activity and a steady reallocation of capital away from traditional equities and bonds.
Nigel Green, chief executive of deVere Group, said he expects Bitcoin to reach $150,000 before the end of 2025, describing the rally as “a reflection of structural change” in global markets.
“Bitcoin is no longer a speculative corner of the market; it’s being treated as a legitimate macro instrument,” Green said.
“Institutional capital, treasury allocations, and sovereign interest are reshaping the market’s depth and maturity.”
He added that each market correction this year has been followed by stronger support levels, indicating that demand is now driven by “conviction capital rather than short-term bets.”
Weaker dollar fuels demand for alternative assets
The latest surge coincides with renewed weakness in the US dollar, which has slipped to multi-week lows amid uncertainty over fiscal policy and growing debt concerns.
Investors have responded by moving into alternative stores of value, including Bitcoin, which many now view as a hedge against both inflation and sovereign risk.
“Every time the dollar softens or government data is delayed, the market is reminded of the value of decentralised, borderless assets,” Green said.
“Bitcoin’s appeal strengthens when trust in central authority is questioned — and right now, that trust is under heavy strain.”
Trading volumes topped $50 billion in the past 24 hours, according to market data, as bullish sentiment triggered new inflows and forced the liquidation of more than $200 million in short positions.
Green said the market environment for digital assets has shifted decisively since President Donald Trump reaffirmed his intention to make the US a global hub for crypto and blockchain innovation.
“When the administration signals openness to innovation, it catalyses institutional confidence,” he said. “This policy tailwind, coupled with clearer regulation, is propelling Bitcoin into the mainstream of portfolio strategy.”
Bitcoin has increasingly been trading as both a risk asset — moving in line with broader market optimism — and a safe-haven hedge, attracting investors seeking diversification amid currency volatility.
“The current cycle is defined by integration, not speculation,” Green said.
“Large asset managers, corporates and even governments are incorporating Bitcoin into their frameworks for diversification and strategic reserves.”
Despite intermittent profit-taking, analysts say Bitcoin’s accumulation trend remains intact, with institutional investors and high-net-worth individuals continuing to build positions on every dip.
Green said that with fiscal uncertainty, limited supply, and growing mainstream adoption, Bitcoin’s path towards $150,000 before year-end “looks increasingly achievable.”
“We’re in a phase where digital assets are integral to the global financial system,” he said. “Bitcoin’s limited supply and growing integration make it an essential hedge in a world of mounting fiscal pressure and currency depreciation.”
Analysts expect continued volatility but agree the market has matured significantly since the last major bull run in 2021, with liquidity, institutional participation, and policy clarity now driving the next phase of Bitcoin’s evolution.