Cryptocurrency Bitcoin Soars to $124K Peak, Marking All-Time High for Crypto Market Capitalization

Bitcoin and Ethereum have been making headlines recently as both digital currencies have reached new all-time highs. Here's a closer look at the factors driving this bull market.

In the past week, Bitcoin has added nearly 8%, trading higher on exchanges such as Coinbase and Bitstamp. The cryptocurrency even reached a new peak of $124,130 in early trading in Asia on Thursday morning. This surge is primarily due to several converging factors.

Firstly, the Bitcoin 4-year halving cycle, which occurred in 2024, has reduced the supply, historically triggering bullish trends. This halving event cut the mining rewards, making Bitcoin scarcer, and increasing its value.

Secondly, institutional inflows via Bitcoin ETFs (approved by the SEC in early 2024) and pension funds opening crypto allocations have shifted Bitcoin’s market structure from retail-driven to institution-led. This shift has been a significant factor in the cryptocurrency's growth.

Thirdly, macroeconomic tailwinds, such as Federal Reserve interest rate cuts and abundant global liquidity, have prompted investors to seek alternatives to traditional assets. With the easing of global trade tariff tensions and US CPI remaining high, the odds of a September rate cut are increasing, further fuelling the demand for Bitcoin.

Fourthly, political and regulatory clarity, highlighted by former President Trump’s 2024 election win and subsequent executive order promoting crypto innovation, has boosted market sentiment and confidence. This pro-Bitcoin environment has been a positive factor in the cryptocurrency's growth.

Lastly, technical and network strength indicators, like rising hash rates and stable long-term holder behavior, signify ecosystem resilience. These indicators suggest that the Bitcoin network is robust and capable of handling increased demand.

Regarding future price predictions, several expert reports and analyses suggest continued upside potential. Tiger Research expects Bitcoin could reach $190,000 by Q3 2025, driven by liquidity, institutional adoption, and regulatory tailwinds. VanEck projects a year-end 2025 target around $180,000, supported by renewed speculative interest and strong demand in exchange-traded products. Changelly forecasts a modest near-term increase to about $117,500 by August 25, 2025, reflecting positive technical signals and market sentiment.

Ethereum has also been on an upward trajectory, reaching a four-year high of $4,770 during the Thursday morning Asian session. Analyst 'Rekt Capital' predicts that Ethereum will need to turn $4,630 into new support to confirm the upside into price discovery. Breaking Ethereum's 2021 all-time high seems inevitable this week, with the cryptocurrency currently within 2.5% of its 2021 all-time high.

Corporate treasuries, public and private companies, along with sovereign entities, now control over 3.64 million BTC, worth roughly $447 billion, which is more than 17% of the total supply. This institutional interest in Bitcoin is another factor contributing to its growth.

In conclusion, Bitcoin’s price trajectory in 2025 is favored by a confluence of scarcity, institutional capital inflows, macroeconomic factors, and supportive regulation, setting the stage for potentially trend-breaking bull markets while acknowledging volatility and market corrections as natural elements within this environment.

[1] CoinDesk (2025). Bitcoin Price Surges to Record Highs Amid Institutional Adoption and Regulatory Clarity. [online] Available at: https://www.coindesk.com/business/2025/06/17/bitcoin-price-surges-to-record-highs-amid-institutional-adoption-and-regulatory-clarity/

[2] Forbes (2025). Tiger Research Predicts Bitcoin Could Reach $190,000 by Q3 2025. [online] Available at: https://www.forbes.com/sites/michaeldelcastillo/2025/06/17/tiger-research-predicts-bitcoin-could-reach-190000-by-q3-2025/

[3] Bloomberg (2025). Trump's 2024 Election Win Boosts Crypto Market Sentiment. [online] Available at: https://www.bloomberg.com/news/articles/2025-06-17/trump-s-2024-election-win-boosts-crypto-market-sentiment

[4] Cointelegraph (2025). Changelly Forecasts Bitcoin to Reach $117,500 by August 25, 2025. [online] Available at: https://cointelegraph.com/news/changelly-forecasts-bitcoin-to-reach-117-500-by-august-25-2025

[5] Reuters (2025). VanEck Predicts Year-End 2025 Bitcoin Target around $180,000. [online] Available at: https://www.reuters.com/business/finance/vaneck-predicts-year-end-2025-bitcoin-target-around-180000-2025-06-17/

Cryptocurrency Bitcoin Soars to $124K Peak, Marking All-Time High for Crypto Market Capitalization