The Bitcoin (CRYPTO: BTC) price continues its record-breaking run this week.
On Monday, the world's original and biggest crypto hit new all-time highs of US$123,092.
Now, it's retraced a touch since then. BTC is currently trading for 'only' US$118,385, according to data from CoinMarketCap.
Still, that sees the Bitcoin price up 80% since this time last year.
Turn back the clock a little further, to 16 July 2020, and you could have bought the digital token for a mere US$9,242. Meaning Bitcoin has surged by 1,381% over the past five years. Though certainly not without a lot of volatility along the way.
Still, that's enough to turn a $8,000 investment into $110,476. In just five years.
Here's what the experts are saying following another record-breaking week for the token.
What's driving the Bitcoin price to new highs?
Josh Gilbert, market analyst at eToro said that the Bitcoin price surging past US$120,000 this week marks "yet another record in what's shaping up to be a monumental rise".
As for what's driving that rise, Gilbert said:
Strong ETF inflows and a solid macro backdrop have helped drive market momentum and that momentum keeps driving new all-time highs. The pace of gains in recent weeks reflects not just growing demand, but the growing maturity of Bitcoin as an asset class.
What we're seeing now is sustained interest, supported by structural inflows, rather than short-term speculation. That matches the most crucial shift, which is who's buying.
As for who is buying, he said, "Institutional adoption is growing, and this is the first real bull market where institutional participation is front and centre."
Gilbert added:
Publicly traded companies are now adopting Bitcoin as part of their treasury strategy, with some making multi-billion-dollar allocations. At the same time, retirement funds and sovereign wealth funds are starting to gain exposure through ETFs, adding to the wave of demand chasing a fixed supply.
He also noted that the Bitcoin price is enjoying some of the same tailwinds as the gold price. The gold price has gained 35% over the past 12 months to US$3,340 per ounce amid fears that the US dollar and other core global fiat currencies could continue to lose value amid loose money policies.
According to Gilbert:
Central banks keep running expansive monetary policies and global money supply keeps rising. In that environment, an asset with fixed, decentralised supply cements itself as an alternative store of value.
Global X Investment Strategist Justin Lin also pointed to rising institutional adoption as helping drive Bitcoin to new highs.
"The sustained rise in Bitcoin's price signals a maturing perspective on the cryptocurrency; it is no longer seen by a speculative asset, but being as a serious asset by institutional investors," Lin said.
Lin added:
Investor flows into Bitcoin ETFs have been very strong following 'Liberation Day', something that no one would have expected given its historical sensitivity to market drawdowns. Its price resilience is also remarkable, hitting all-time highs in the current environment.
On the domestic front, Lin noted:
The second quarter of 2025 was the strongest quarter of Bitcoin ETF flows ever for Australia, with investors allocating more than $163 million to the asset, up more than 400% from a year earlier.
