How the Bitcoin price just smashed new all-time highs…again!

The Bitcoin price just leapt to new records. But why?

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The Bitcoin (CRYPTO: BTC) price just did it again.

And by 'it' I mean break into new all-time highs.

Overnight, the world's original and biggest crypto topped US$112,009. It's since retraced back to US$111,115 at time of writing on Thursday morning.

Even with that retrace, the Bitcoin price is up a whopping 94% over the past year, having set a series of new record highs in 2025.

This sees the token commanding a market cap of US$2.2 trillion.

Boom!

What are the experts saying about the surging Bitcoin price?

Josh Gilbert, market analyst at eToro, pointed out that "overnight, we've seen two huge assets hit major milestones".

Namely, generative AI chip maker Nvidia Corporation (NASDAQ: NVDA) just became the first company on earth to ever reach a market cap north of US$4 trillion (AU$6.1 trillion). And BTC hit that new record high.

Commenting on the surging Bitcoin price, Gilbert said:

Strong ETF inflows and a solid macro backdrop have helped drive market momentum, but perhaps the most crucial shift is who's buying. Institutional adoption is growing, and this is the first real bull market where institutional participation is front and centre.

Gilbert added that "retirement funds and sovereign wealth funds are starting to gain exposure through ETFs, adding to the wave of demand chasing a fixed supply".

Spencer Hallarn, global head of OTC trading GSR, sounded a similar note (quoted by Bloomberg).

"Voracious demand from equity market vehicles such as ETFs and digital-asset Treasuries has underpinned a continuous bid for Bitcoin," Hallarn said.

Injecting a word of caution in regard to the soaring Bitcoin price, Vincent Liu, chief investment officer at Kronos Research, said, "Traders should stay vigilant for potential profit-taking or macroeconomic shifts that could spark corrections, but the trend is firmly bullish for now."

Adam Guren, founder of Hunting Hill Global Capital, concluded:

BTC's move through US$112,000 reflects the compounding effects of strong ETF inflows, rising institutional adoption, and a favourable macro backdrop.

With rate cuts back on the table and political instability rising globally, investors are reaching for hard assets, and Bitcoin is benefiting from both 'gold like' positioning and risk on momentum. What's different this cycle is that the demand is structural, regulated, and sticky.

What about Ethereum?

The Ethereum (CRYPTO: ETH) price is up 7% over the past week, currently trading for US$2,764.

But unlike the Bitcoin price, the world's number two crypto is a long way from resetting its own all-time highs.

Ethereum hit a peak of US$4,892 on 16 November 2021. That's about 44% above current levels.

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Ethereum, and Nvidia. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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