On 31 December, the world's first and biggest crypto was trading for US$88,430, according to data from CoinMarketCap.

Indeed, with the price then down some 30% from the all-time high of US$126,198, notched on 7 October, a lot of crypto investors were eyeing what looked like a potentially opportune dip at the start of this year.

So, how did they fare?

What would your $10,000 Bitcoin investment be worth now?

At the start of 2026, you could have bought 0.113 Bitcoin, excluding any potential brokerage or exchange fees, with your US$10,000 investment.

You could also denote that in satoshis. Named after Satoshi Nakamoto – the still unknown creator, or creators, of BTC – one BTC is equivalent to 100 million satoshis. So your US$10,000 would have netted you 11.31 million satoshis.

Now on Tuesday, 7 April, the BTC price edged lower, changing virtual hands for US$68,755 in late afternoon trade Aussie time. That saw the token commanding a market cap of US$1.37 trillion.

Unfortunately, it also means that the US$10,000 you invested in the world's top crypto at the start of the year is now worth $7,775, or a loss of 22.2%.

How about Ethereum (CRYPTO: ETH)?

If Bitcoin investors are out more than 22% year to date, how about Ethereum?

Well, on 31 December, the world's number two crypto by market cap was trading for US$2,971. Meaning you could have bought 3.37 Ethereum (again excluding any potential exchange or brokerage fees).

So, how did that crypto investment work out to date?

Well, on Tuesday afternoon, Ethereum was trading for US$2,108. That means your US$10,000 investment at the start of 2026 would now be worth US$7,095. Or a loss of 29.0%.

How does the Bitcoin performance compare to buying ASX shares or gold?

If, instead of buying Bitcoin or Ethereum, you decided to invest US$10,000 in an S&P/ASX 200 Index (ASX: XJO) tracking exchange-traded fund (ETF), you'd still have lost money.

But a lot less.

As of late afternoon on Tuesday, the ASX 200 had slipped 0.24% since market close on 31 December. So your US$10,000 investment would be worth a slightly diminished US$9,976 today.

As for gold, the yellow metal kicked off 2026 trading for US$4,319 an ounce. Despite the sharp decline in March, gold was still commanding US$4,649 in Tuesday afternoon trade.

That sees the gold price up just under 7.9% year to date.

And it means a US$10,000 investment in bullion at the start of the year would be worth US$10,789 today.

The post US$10,000 invested in Bitcoin at the start of the year is now worth… appeared first on The Motley Fool Australia.

That sees the world's first and biggest crypto up 9.6% over the past week. A week that sees the S&P/ASX 200 Index (ASX: XJO) down 1.1%.

As for the token's performance following the United States and Israel's airstrikes on Iran on 28 February and the ensuing broader Middle East conflict, Bitcoin's price is up around 10.5%. Bitcoin was trading for around US$65,600 before news of the attack broke.

Interestingly, the gold price has gone the other direction. Gold is currently trading for US$5,023 per ounce, down around 5% since the outbreak of the fighting.

Still, the gold price is up more than 67% over 12 months, while Bitcoin has tumbled around 14% over this time.

And despite the past week's rebound, the world's top crypto by market cap remains down more than 42% from its 7 October all-time high of US$126,199.

What the experts are saying about the Bitcoin price amid the Iran conflict

With the Bitcoin price up some 10% since the initial missile attack on Iran, a number of analysts say the digital token is beginning to live up to its haven promise.

According to Alex Kuptsikevich, chief market analyst at FxPro (quoted by Bloomberg):

It appears that Bitcoin is beginning to attract attention as a safe-haven asset, rising amid volatility in financial markets. The bulls are clearly trying to stir up the market to trigger a new short squeeze during the weekend, a period of reduced volatility.

Cici Lu McCalman, principal consultant and founder of Venn Link Partners, added:

Bitcoin has shown notable resilience, rebounding above $70,000 after briefly dipping below $63,000 during the initial risk unwind on Iran war. While the recovery is encouraging, price action still looks more like stabilisation than a full confidence to risk-on positioning.

As for further potential increases in the Bitcoin price, crypto investors may need to see some calm return to global energy markets and the broader geopolitical outlook.

"The macro backdrop remains unsettled, with oil volatility and lingering geopolitical uncertainty keeping risk sentiment cautious in the short term," Rachael Lucas, an analyst at BTC Markets, said.

How about Ethereum?

Like the Bitcoin price, the Ethereum (CRYPTO: ETH) price has outperformed gold and global equities since the outset of the Iran conflict.

On 28 February, Ethereum was trading for US$1,950. Today, the world's number two token is fetching US$2,171, up more than 11% since the fighting began.

But the Ethereum price remains down more than 56% since notching its own all-time high of US$4,954 on 25 August.

The post Why is the Bitcoin price outperforming amid the Middle East conflict? appeared first on The Motley Fool Australia.

Following the US presidential election that saw crypto-friendly Donald Trump storm back into the White House on 4 November 2024, the world's first and biggest crypto by market valuation went on a tear.

Indeed, for a while there, the Bitcoin price charge looked unstoppable.

Until it went into reverse.

Amid the growing popularity (and legality) of Bitcoin exchange traded funds (ETFs), and a rapid increase in institutional adoption, Bitcoin surged to an all-time high of US$126,198 on 7 October 2025, according to data from CoinMarketCap.

With the Bitcoin price down another 1.3% overnight, the digital token is currently trading for US$66,500. That's down 47.4% from the record highs posted just a little over four months ago. And it's now trading below where it was before Trump's election victory.

You're unlikely to hear Ethereum (CRYPTO: ETH) investors cheering either.

The world's second-biggest crypto slid 1.5% overnight to be trading for US$1,955. This puts the Ethereum price down a sharp 60.5% since the token notched its own record high of US$4,954 on 25 August last year.

So, what's going on?

Bitcoin price losing institutional support

When the US Securities and Exchange Commission (SEC) gave the green light to Bitcoin spot ETFs in January 2024, most analysts expected this to bring stability and ongoing growth to the notoriously volatile crypto

And for a while it did, as prices became less dependent on more fickle retail traders.

But over the past months, the influx of money that sent the Bitcoin price to new heights has been flowing the other way.

According to Bloomberg, some US$8.5 billion has exited US-listed spot Bitcoin ETFs since 10 October. And futures exposure to Bitcoin on the Chicago Mercantile Exchange (CME) was reported to be down by around 66% since late 2024.

"The market structure really broke down on October 10. We've never seen this steady and severity of a drawdown even in 2018 and 2022," Zach Lindquist, managing partner at Pure Crypto, said.

How does this compare to gold?

Unlike the 'digital gold' many had expected it to be, Bitcoin has not held up as a hedge against volatile stock markets, inflation, or concerns of US dollar debasement.

Indeed, the gold price remains at U$4,970 per ounce today. While that's down 8.2% from gold's all-time high of US$5,417 per ounce on 28 January, the gold price remains up more than 69% over 12 months.

The Bitcoin price, on the other hand, is now down more than 30% since this time last year.

The post How mainstream adoption is now hammering the Bitcoin price appeared first on The Motley Fool Australia.

And volatility is spiking to levels that certainly aren't for the faint-hearted.

Over the past 24 hours, the world's first and biggest crypto by market valuation has traded at highs of US$73,162 before crashing to a low of US$60,074. That's a 17.9% price fall within a single day, according to data from CoinMarketCap.

And this for an asset with a market cap of US$1.23 trillion.

In late morning trade on Friday, the Bitcoin price has clawed its way back to US$61,352, leaving it down 13.8% since this time yesterday.

That sees the virtual token down a painful 51.4% since notching a record high of US$126,198 on 7 October.

And investors won't have found any safety in Ethereum (CRYPTO: ETH) of late either.

The world's second-largest crypto has tumbled 13% over the past 24 hours, currently trading at US$1,856. That's up from US$1,749 just a few hours ago.

But the Ethereum price has a long way to go before recouping the 63.6% losses it suffered since hitting its own record highs of US$4,954 on 25 August.

So, where are crypto markets getting hammered?

What's pressuring the Bitcoin price?

Commenting on the world's top crypto sinking to one-year plus lows, Emir Ibrahim, analyst at Zerocap, said, "The move lower in Bitcoin overnight reflects a violent leverage unwind rather than a deterioration in fundamentals."

He added:

Thin order books combined with elevated positioning saw forced liquidations cascade through the market, briefly pushing BTC into the low US$63,000 mark, as the market worked through a multi-billion-dollar reset in leverage.

Ibrahim noted that the selling pressure isn't just impacting the Bitcoin price.

"This event was not isolated to crypto," he said.

Indeed, the Nasdaq Composite Index (NASDAQ: .IXIC) closed down 1.6% overnight. The tech-heavy index is now down 4.5% since Monday's close.

According to Ibrahim:

Risk assets sold off in tandem, with a tech-led drawdown in equities and sharp reversals in commodities pointing to a broader 'dash for cash' environment.

In crypto specifically, derivatives markets moved rapidly into short-gamma territory, with volatility bid aggressively and downside skew widening as late long positioning capitulated.

Joel Kruger, markets strategist at LMAX Group, said the tumbling Bitcoin price is pulling down investor sentiment in the broader crypto space.

"Price action across crypto has been undeniably heavy over the past 24 hours, with Bitcoin acting as the primary drag on broader sentiment," he said (quoted by The Australian Financial Review).

"That said, many of the hallmarks of capitulation are now in place: daily technicals are deeply oversold, the fear and greed index has slipped to extreme lows," Kruger added.

The post The Bitcoin price has now halved since October. What's going on? appeared first on The Motley Fool Australia.

Again.

In early afternoon trade on Wednesday, the world's first and biggest crypto is changing virtual hands for US$76,619 (AU$109,097). That's down 2.4% over the past 24 hours and down 14.5% since this time last week, according to data from CoinMarketCap.

This sees the Bitcoin price down 24.8% over the last year, and it puts the token within a whisker of setting new one-year lows.

It was only on 7 October, less than four months ago, that Bitcoin investors were celebrating the token's all-time high of US$126,198. But with momentum largely shifting to the downside since then, the world's biggest crypto is now down 39.3% from those highs.

You're unlike to hear much celebrating from Ethereum (CRYPTO: ETH) investors either.

The world's second biggest crypto is down another 4% over the past 24 hours to trade for US$2,258. This sees the Ethereum price down 29.2% in a month and down a steep 54.1% since the token notched its own all-time highs on 22 August last year.

Here's what's been rattling crypto markets.

Why is the Bitcoin price going backwards?

Bohan Jiang, senior derivatives trader at FalconX, noted that frustrated crypto dip buyers are adding to the selling pressure (quoted by Bloomberg).

"A lot of the traders were trying to buy the dip, betting on a rebound above $80,000," Jiang said. "As Bitcon drifts lower, a lot of those positions have been liquidated putting pressure on prices."

Augustine Fan, partner at crypto options platform SignalPlus, pointed the finger of blame for the Bitcoin price rout at eroding investor sentiment.

"Crypto sentiment is hitting rock bottom," Fan said. "Volatility has finally moved up after a yearlong move lower as traders scrambled for protection, with markets trading in bear-market mode."

The Bitcoin price initially got a boost from the launch of various spot exchange-traded funds (ETFs) that directly tracked the token. But those ETFs now are adding to the selling pressure, with material outflows reported since November.

And, like most every risk asset, the token still remains highly sensitive to interest rate moves. With markets now pricing in fewer rate cuts from the US Federal Reserve (and the RBA moving to lift rates yesterday), the crypto looks to be facing added headwinds.

According to AirdropAlert.com's Morten Christensen (quoted by Bloomberg), "Bitcoin still trades like a high-beta risk asset, not digital gold. That doesn't mean the thesis is dead; it means it's not there yet."

The post Why is the battered Bitcoin price tumbling again today? appeared first on The Motley Fool Australia.

The world's first and biggest crypto is currently trading for US$77,334 (AU$111,032). That's down 1.6% overnight and down 11.7% since this time last week, according to data from CoinMarketCap.

This marks the lowest levels for the token since 9 April, when all manner of risk assets came under pressure following United States President Donald Trump's 'Liberation Day' global tariff pronouncements.

The Bitcoin price hit an all-time high of US$126,198 on 7 October last year. The crypto is now down 38.4% from that high watermark.

Ethereum (CRYPTO: ETH), the world's second biggest crypto, is having an even tougher run of it lately.

Ethereum is currently fetching US$2,275, down 7.1% over the past 24 hours. The Ethereum price is now down 20.5% since this time last week. Ethereum hit its own record high of US$4,954 on 22 August last year.

The world's number two crypto has since tumbled 53.9% from those highs.

What's pressuring the Bitcoin price?

The Bitcoin price looks to be catching headwinds on several fronts.

First, despite the recent pullback in gold and silver prices, investors have been showing greater interest in precious metals and cold hard cash than in cryptocurrencies as safe-haven assets amid rising geopolitical risks.

Indeed, spot Bitcoin exchange-traded funds (ETFs) outflows have continued over the past weeks.

Then there's the diminishing outlook for ongoing interest rate cuts from the US Federal Reserve.

What are the experts saying?

"Suddenly, cryptocurrencies no longer appear to be an alternative to fiat money and a hedge against the not-so-responsible financial policies of major countries," Alex Kuptsikevich, chief market analyst at FxPro, said (quoted by Bloomberg).

"Silver and gold have become the vehicle for investors concerned about fiat currencies," Louis Navellier at Navellier & Associates added.

Matt Howells-Barby, vice president at Kraken, noted that the big global cash splash on artificial intelligence also looks to be weighing on the Bitcoin price.

He said:

Concerns around heavy AI investment by big tech, without the corresponding earnings to justify the spend, appear to be unsettling broader risk assets. With credit spreads already extremely tight, markets were firmly risk-on going into this move, so it's not surprising to see investors pause and reassess their risk appetite.

Then there's the market's shifting expectations on the outlook for interest rates in the world's biggest economy after United States President Donald Trump last week appointed Kevin Warsh to succeed Jerome Powell as Federal Reserve chair.

While Warsh has recently amended his views to be more dovish and in line with Trump's own push for lower interest rates, he is known to be hawkish, with a sharp focus on combating inflation.

"While his nomination would support the case that rates will continue to decline in 2026 through to 2027, Warsh is a career economist who is all too aware of reducing too much, too quickly," Hayden Hughes, general partner at Tokenize Capital, said (quoted by Bloomberg).

The Bitcoin price has historically proven to be highly sensitive to interest rate moves.

The post What on earth is happening with the Bitcoin price? appeared first on The Motley Fool Australia.

Proponents of Bitcoin have often described the cryptocurrency as 'digital gold', pointing to a number of characteristics the two asset classes share. Indeed, there are several striking similarities. Like gold, Bitcoin is inherently scarce, with only 21 million bitcoins ever to be mined. This scarcity is why some investors believe Bitcoin can function as an effective inflation hedge.

Bitcoin is also outside the control of a central government and cannot be manipulated in the same way a country's currency can. That is another reason why investors are attracted to gold as an investment.

So if these two asset classes are so similar, it may come as a surprise to see how differently they have behaved in recent months. We've already discussed gold's near-25% rise in 2026. However, Bitcoin has floundered this year, currently down 3.7% year to date. The 12-month performance comparison is even more divergent.

Gold has almost doubled since this time last year, rising from around US$2,800 to the current price of US$5,350. In contrast, Bitcoin has slumped from US$105,430 per coin to the US$84,175 we are seeing today. That's a drop worth just over 20%.

Store of value? Perhaps not.

Why are investors 'going analogue' for gold over Bitcoin?

Ever since Bitcoin emerged onto the investing scene, its proponents have been making all sorts of ambitious claims. The 'digital gold' argument is one well-circulated. As is the idea that Bitcoin will eventually become so efficient that consumers will use it alongside the Australian dollar as everyday currency.

Well, the latter still appears to be a pipedream, and the former claim wilts under scrutiny.

Bitcoin bulls can point to the similarities between the cryptocurrency and gold all they like. But the last month has just reinforced the notion that investors are not ready to treat the two assets equally. Bitcoin has always been treated as a speculative, growth-stock-like investment, one that tends to rise and fall alongside market excitement.

In contrast, gold is arguably fulfilling its traditional 'safe haven asset' role right now (albeit more maniacally than usual), given ongoing global concerns and tensions in both the geopolitical and economic arenas.

Until I see evidence to the contrary, I don't believe Bitcoin is close to being treated as a gold-like asset by financial markets. As with many other things, it seems analogue is back in vogue.

The post Is Bitcoin digital gold? It seems investors prefer the real thing appeared first on The Motley Fool Australia.

Ethereum (CRYPTO: ETH), the world's second biggest crypto, is outpacing those gains today. The Ethereum price is up 7.1% since this time yesterday, trading for US$3,329. This sees Ethereum commanding a market cap of US$402 billion.

As for the two top cryptos' performance 14 days into 2026, that title also goes to Ethereum.

On 31 December, Ethereum was trading for US$2,973, which now sees the number two crypto up 12% year to date in 2026.

The Bitcoin price has gained 7.9% over this same time, having closed out 2025 trading for US$88,321.

Ethereum and Bitcoin price still well below all-time highs

Despite the solid start to 2026, both top cryptos remain well down from the record highs they notched in 2025.

Ethereum traded at an all-time high of US$4,954 on 25 August last year. This leaves the Ethereum price down 32.8% from that high watermark.

The Bitcoin price notched its own record high of US$126,198 six weeks later, on 7 October. Bitcoin is currently trading 24.4% below that all-time high.

The sell-down from those record highs for both cryptos was partly driven by profit-taking following months of strong gains. The latter half of 2025 also saw investors begin to question the pace and depth of likely interest rate cuts from global central banks.

Much like tech and other growth stocks, Bitcoin, Ethereum, and most non-stable coins have proven to be highly susceptible to interest rate moves. Most economists still expect at least one rate cut from the embattled US Federal Reserve in 2026, which could help support crypto prices.

Crypto waters are calming

Zerocap analyst Emir Ibrahim noted that the outsized moves crypto investors have historically experienced in the Bitcoin price have been smoothing out.

"For over a decade, Bitcoin's halving was a North Star for crypto investors," he said. "Things are a bit different as we move into 2026, however, and it has become clear that the rhythmic four-year boom-bust cycle is effectively broken."

According to Ibrahim

In previous cycles, we'd be bracing for a multi-year crypto winter right about now. Instead, we're seeing a market anchored by patient capital. It'd be hard to ignore that institutional participation has fundamentally changed the math on the asset class.

BTC ETFs alone now hold about US$140 billion, about 7% of total supply, and issuance has dropped below 1% annually.

Ibrahim concluded, "It's clear that BTC's volatility is no longer an outlier among other assets; it's on par with major high-growth tech stocks at the end of 2025."

The post How is Ethereum stacking up against the Bitcoin price so far in 2026? appeared first on The Motley Fool Australia.

Bitcoin (CRYPTO: BTC) has lived at the centre of that tension for more than a decade. Every year brings a fresh wave of eye-catching forecasts, from imminent collapse to stratospheric gains. 

Very few land anywhere near the mark.

As investors look ahead in 2026, it's worth stepping back from the noise and asking a simpler question: What is the current state of play for Bitcoin, and what should investors actually be paying attention to?

The state of play for Bitcoin heading into 2026

Bitcoin enters 2026 in a very different position than where it stood just a few years ago.

The launch of spot Bitcoin ETFs in major markets has been a structural shift. Institutional capital now has regulated, familiar pathways to gain exposure, and Bitcoin increasingly trades alongside other global risk assets rather than in isolation.

At the same time, Bitcoin's price action has appeared more subdued than many long-term holders expected. After periods of explosive upside, stretches of sideways or "boring" trading have returned. That has frustrated momentum traders, but it has also reinforced an important point: Bitcoin is maturing.

Macro conditions now matter more than ever. Interest rate expectations, global liquidity, and central bank policy have all shown a strong influence on Bitcoin's short-term price movements. When liquidity tightens, Bitcoin has struggled. When conditions ease, it tends to rally alongside equities and other growth assets.

This doesn't make Bitcoin less volatile. It simply means the drivers of that volatility are clearer and more interconnected with the broader financial system.

The bearish predictions: Why some expect pain ahead

On the bearish side, the arguments are familiar but not irrelevant.

Some critics argue Bitcoin remains vulnerable to sharp drawdowns if global growth slows or financial conditions tighten further. Rising real yields, regulatory uncertainty in certain jurisdictions, and the risk of speculative excess all feature prominently in bearish outlooks.

Others point to Bitcoin's history of brutal corrections. Even in long-term uptrends, 50% to 80% drawdowns have occurred multiple times. From this perspective, calls for a major pullback in 2026 are not outrageous. They are consistent with Bitcoin's past behaviour.

More extreme bearish predictions go further, questioning Bitcoin's intrinsic value altogether. These views tend to resurface whenever price momentum fades, often amplified by headlines designed to provoke fear rather than insight.

The bullish predictions: How high is "too high"?

On the other end of the spectrum sit the bold bullish forecasts.

Some investors project Bitcoin prices well into the hundreds of thousands of US dollars, citing fixed supply, growing institutional adoption, and its emerging role as a hedge against currency debasement. Others attach even larger numbers, arguing that Bitcoin could eventually rival gold or become a global reserve asset.

These scenarios usually rely on long-term adoption curves rather than near-term catalysts. They assume Bitcoin continues to absorb capital from traditional stores of value and benefits from structural distrust in fiat currencies.

The issue is not that these outcomes are impossible. It's that price targets often get treated as inevitabilities rather than highly uncertain scenarios. Markets rarely move in straight lines, and narratives can change much faster than fundamentals.

What investors should focus on instead

The uncomfortable truth is that nobody knows where the Bitcoin price will be at the end of 2026.

What is far more predictable is that volatility will remain. Bitcoin has never offered a smooth ride, and there is little reason to expect that to change now that it has entered mainstream capital markets.

For investors, the key question is not which prediction sounds most compelling, but whether they have built genuine conviction. That means understanding why Bitcoin exists, what role it might play in a portfolio, and how much volatility it can realistically tolerate.

Pinning hopes on the loudest voice or the boldest headline is rarely a sound strategy. 

In 2026, as in every year before it, Bitcoin will likely surprise both bulls and bears. Investors who approach it with clear expectations, sober risk management, and independent thinking will be best placed to handle whatever comes next.

The post Bold calls, big risks, and what really matters for Bitcoin price in 2026 appeared first on The Motley Fool Australia.

Volatility returned towards the end of the calendar year as sentiment cooled and risk appetites shifted. As a result, much of the huge gains seen earlier in the year were reversed by the 31st of December.

Bitcoin declined around 17% throughout 2025, XRP (CRYPTO: XRP) dropped around 30%, and Dogecoin (CRYPTO: DOGE) dropped just over 70% in 2025.

As we move closer into the new year, among Bitcoin, XRP, and Dogecoin, which is the better buy for investors?

The case for Bitcoin

In 2025, Bitcoin suffered the biggest price plummet seen since 2021. By November, the coin's value had dropped to around US$85,000 per coin. While Bitcoin regained some of that value in the weeks after, it slumped again in December. For context, Bitcoin peaked at US$124,739 per coin in early October.

So far in 2026, the cryptocurrency has climbed 4.92%, sparking excitement that it could be on a path for recovery.

Bitcoin is widely regarded as the global leader in the cryptocurrency market. It has a fixed supply, is experiencing growing institutional adoption, and is dominant in the cryptocurrency space.

The downside is that Bitcoin is less likely to be as explosive as some of the smaller cryptocurrencies. But as it is generally considered one of the most reliable coins to hold long term, it would be the best option for risk-averse, longer-term investors in 2026.

The case for XRP

XRP was one of the fastest-rising altcoins in 2025. It had explosive growth of over 56% in early July alone, rising to an annual high of US$3.65 per coin. It then tumbled just over 47% by the close of 2025.

In 2026, so far, XRP has recovered 16.29% of its value. At the time of writing, it is trading for US$2.14 per token.

XRP is known for being a fast and low-cost global payment. It acts as a bridge between different currencies, without the need for traditional banks. If the uptake of the technology continues in 2026, it has the potential to outperform major coins like Bitcoin. 

The downside is that XRP comes with a lot more risk, so this is the best option for investors who want higher growth and have a larger appetite for risk.

The case for Dogecoin

Dogecoin was launched as a meme-based parody of Bitcoin in 2013 and has been a wildly volatile token ever since. It is primarily driven by sentiment, community support, and social media attention, rather than any fundamental factors. 

There was a huge spike in interest from investors in late-2025 and early-2025, but over the year, the coin shed around 70% of its value. 

So far in 2026, Dogecoin has jumped 24.44% to 15 cents per coin. 

The benefits of this coin are that it can surge quickly. But it lacks the institutional backing that Bitcoin or XRP have, so it's a high-risk option most suited to short-term investors. 

So which is the best option for investors?

There is no crystal ball to tell us how the crypto market will play out in 2026, so the answer to this question depends on an investors' risk appetite. 

Bitcoin is a more reliable and stable play. Meanwhile, XRP has the potential to yield explosive returns to those willing to take on more risk, and Dogecoin is best suited for short-term traders.

The post Better Buy in 2026: XRP, Dogecoin, or Bitcoin? appeared first on The Motley Fool Australia.

The honest answer is that no one knows what the price of any asset will do over the short term. That uncertainty is magnified with Bitcoin, which remains far more volatile than shares, bonds, or property. Large price moves in either direction can happen quickly and often shock markets.

For investors, the more useful question is not whether Bitcoin will crash in 2026, but how to think about the probabilities that shape its price.

Why Bitcoin looks different today

One important context point is that many of the long-term headwinds that once clouded Bitcoin's future have eased.

The launch of spot Bitcoin exchange-traded funds in 2024 was a structural shift. These products gave the cryptocurrency a new level of legitimacy and accessibility, allowing large investment firms to offer Bitcoin exposure within familiar, regulated vehicles. That opened the door to broader institutional participation, rather than Bitcoin remaining the domain of early adopters and retail traders.

At the same time, governments and institutions are increasingly recognising Bitcoin's role as a potential store of value and hedge against purchasing power erosion. While that debate is far from settled, Bitcoin is no longer dismissed outright as a fringe experiment.

The result is that Bitcoin has firmly anchored itself in global capital markets. After surpassing a trillion-dollar market capitalisation and gaining direct institutional allocation via ETFs, Bitcoin now trades alongside other risk assets, responding to shifts in global liquidity and monetary policy.

Macro forces still matter

That integration cuts both ways.

Bitcoin's price action over recent months illustrates this clearly. Pullbacks have coincided with a hawkish stance from the US Federal Reserve, rising real yields, and, more recently, Japan's surprise monetary tightening, which disrupted the yen carry trade.

When global liquidity tightens, risk assets tend to struggle. When liquidity eases, they often rally together. Bitcoin is no longer exempt from these forces. In that sense, sharp declines are not signs of failure, but a reflection of Bitcoin's place within the broader financial system.

That also means any discussion of a 2026 "crash" cannot ignore macro conditions. Monetary policy decisions in the US and Japan, inflation trends, and global growth expectations will likely matter as much as crypto-specific developments.

Price targets are not prophecies

Bitcoin attracts bold forecasts like few other assets. Bullish commentators regularly float eye-catching price targets, including claims that Bitcoin could rise tenfold to reach US$1 million per coin.

Mathematically, that would imply a market capitalisation of around US$21 trillion, assuming Bitcoin's maximum supply of 21 million coins. It would also make early adopters and large corporate holders exceptionally wealthy.

The problem is that price targets are not predictions of the future. They often reflect the incentives and positioning of the person making them. Bitcoin holders tend to publish optimistic forecasts. Critics often argue that the asset is ultimately worthless.

History shows that such proclamations rarely come true with any precision. Markets do not move in straight lines, and narratives often change faster than prices.

A long-term lens still matters

Despite its harsh volatility, Bitcoin is proving itself as a large, enduring asset class. Zooming out, its long-term price chart remains one that many investors would dream of owning — provided they can tolerate the rollercoaster along the way.

Whether Bitcoin crashes in 2026 is unknowable. What is more predictable is that volatility will remain a defining feature. For investors, preparing for wide swings, rather than betting on precise outcomes, remains the more sensible approach.

As with any speculative asset, the long run is what ultimately matters.

The post Will the Bitcoin price crash in 2026? appeared first on The Motley Fool Australia.

In recent months, the digital asset surged to an all-time high near US$126,000 before sliding more than 30% from peak to trough. This week alone, the price swung from around US$92,000 to below US$85,000 and then jumped more than 8% overnight.

For long-term observers, this isn't unusual behaviour. Volatility has always been part of Bitcoin's story, and historically, these periods of sharp movement tend to arrive with various neat headlines to blame. 

So what is actually going on, and is any of this relevant for ASX investors?

Why Bitcoin is moving so sharply

Market observers suggest the latest pullback has far more to do with liquidity dynamics than a fundamental shift in sentiment. Analysts tracking flows point to tightening liquidity conditions, with shorter-term traders adjusting their positioning as central bank reserves stabilise again. This often creates pressure across risk assets — Bitcoin included.

At the same time, some of the selling pressure from long-term holders appears to have eased. On-chain data shows renewed accumulation from larger cohorts, which is typically a constructive sign for medium-term price trends.

And importantly, mainstream interest continues to grow. Bank of America recently suggested that a 4% portfolio allocation may make sense for certain investors. Meanwhile, Vanguard has softened its long-standing stance by opening access to Bitcoin exposure across its platform. Whether or not investors agree with those endorsements, they reflect a noticeable shift in institutional acceptance.

Why volatility sometimes has nothing to do with fundamentals

One of the biggest drivers of short-term swings is far more mechanical: leverage.

Both long and short leveraged positions can be wiped out when Bitcoin moves quickly. When that happens, forced liquidations trigger further buying or selling, which can amplify each price move. It's part of the reason why prices can plunge one hour and rally aggressively the next without any change in broader conditions.

In other words, the volatility is often a function of market structure rather than real economic news.

What this means for ASX investors

Even if you don't hold Bitcoin directly, its movements increasingly touch the Australian market:

Digital infrastructure companies: ASX names like Block (ASX: XYZ) tend to react to shifts in digital asset sentiment because their revenue models and investor bases overlap with the broader ecosystem.

ASX-listed Bitcoin ETFs: Funds such as the VanEck Bitcoin ETF (ASX: VBTC) and Betashares Bitcoin ETF (ASX: QBTC) move broadly in line with the underlying asset. Swings in Bitcoin flow into these products immediately.

None of this means ASX portfolios must have exposure. But it does underline why more market participants are keeping an eye on Bitcoin's behaviour, even if they never intend to own a single satoshi.

Foolish Takeaway

Bitcoin's volatility can be unsettling, but it isn't new. For some investors, the asymmetric nature of the asset — the idea that the long-term upside could outweigh the downside — is enough reason to consider a small, well-defined allocation. For others, the swings alone are reason to steer clear.

The sensible middle ground is simple: invest in assets you understand, in a way that aligns with your goals and risk tolerance.

Bitcoin's price movements will continue to make headlines, but your long-term strategy should remain anchored in discipline, diversification, and patience, whether you hold digital assets or not.

The post Bitcoin price volatility is back. Should ASX investors pay attention? appeared first on The Motley Fool Australia.

At time of writing in late morning trade on Friday, the world's first and biggest digital token is trading for US$87,038 (AU$134,922). That gives it a market cap of US$1.73 trillion.

Now, that's still a lofty valuation by longer-term standards. After all, only 10 years ago BTC was trading for just US$400.

But it's certainly been a painful journey for crypto investors arriving late to the party.

As you may recall, it was only on 7 October that the Bitcoin price rocketed to a new record high of US$126,198, according to data from CoinMarketCap.

Meaning crypto investors who bought at those levels will currently be nursing losses of 31%.

And with the vast majority of major cryptos joining the sell-off, we've now seen more than US$1 trillion wiped from the global digital asset sector.

Why is the Bitcoin price falling so hard?

Following the past five weeks rout, the Bitcoin price is now down 8.0% since this time last year. That sees the token significantly underperforming the 1.5% gains delivered by the S&P/ASX 200 Index (ASX: XJO).

Not to mention the 84.9% one-year gains posted by the S&P/ASX All Ordinaries Gold Index (ASX: XGD). An unwelcome reminder, perhaps, to those who've lauded the token as 'digital gold'.

The latest pressure on the Bitcoin price comes on several fronts.

First, investors are significantly paring back expectations of another interest rate cut from the US Fed this year. And Bitcoin has proven to be highly sensitive to interest rates.

Second, the token remains a risk asset. And with the Nasdaq Composite Index (NASDAQ: .IXIC) coming under pressure amid growing fears of a pending AI bubble burst, a lot of crypto investors look to be lightening their Bitcoin exposure, along with sending AI chip maker Nvidia Corporation (NASDAQ: NVDA) shares down 3.2% overnight.

Commenting on the US$1 trillion crypto collapse, said James Butterfill, head of research at CoinShares, said (quoted by Bloomberg), "Investors are stabbing in the dark a bit — they haven't got any direction on macro, so all they can see is what on-chain whales are doing and they're getting quite worried about it."

Matthew Hougan, chief investment officer at Bitwise Asset Management, added:

I think we are closer to the end of the selling than the beginning, but markets are uncomfortable and crypto could have more downside here before it finds a base to recover from.

What about Ethereum?

As mentioned, the Bitcoin price is far from the only one getting hammered lately.

Ethereum (CRYPTO: ETH), the world second biggest crypto, is down 6.3% over 24 hours, currently trading for US$2,847.

The Ethereum price is now down 42.5% since the token notched its own record high of US$4,954 on 25 August.

The post Bitcoin price collapse leads US$1 trillion crypto crash appeared first on The Motley Fool Australia.

In morning trade on Friday, the ASX 200 is down 1.6%.

The tech sector is broadly mirroring those steep losses, with the S&P/ASX All Technology Index (ASX: XTX) – which also contains some smaller tech companies outside of ASX 200 tech stocks – down 1.7% at this same time.

Here's how some of Australia's biggest tech shares are faring on Friday:

• Shares in cloud-based software solutions provider WiseTech Global Ltd (ASX: WTC) are down 1.7%
• Shares in software-as-a-service provider Technology One Ltd (ASX: TNE) are down 2.9%
• Shares in data centre operator NextDc Ltd (ASX: NXT) are down 2.2%
• Shares in location-sharing software developer Life360 Inc (ASX: 360) are down 2.4%
• Shares in accounting software provider Xero Ltd (ASX: XRO) are down 1.8%

Ouch!

Here's what's got Aussie investors spooked today.

ASX 200 tech stocks in the red

Aussie investors are taking their cue from US stock markets, which finished sharply lower on Thursday.

Overnight, the S&P 500 Index (SP: .INX) closed down 1.6%. And the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) ended the day down 2.2%.

AI chip-making giant Nvidia Corp (NASDAQ: NVDA) underperformed those losses, closing down 3.2%.

ASX 200 tech stocks, and indeed the broader global stock markets, are catching headwinds on a few fronts.

First, the odds of another interest rate cut from the US Federal Reserve in 2025 are receding. While most Australians were asleep, Fed Governor Michael Barr threw more cold water on a December rate cut, noting the central bank needs to be careful before moving forward with any more interest rate cuts.

The RBA has also signalled it is unlikely to reduce rates anytime soon. And technology-focused companies, often priced with future growth in mind, tend to be very sensitive to interest rate expectations.

Another stiff headwind battering ASX 200 tech stocks today is the growing concern of an AI investment bubble. That's despite Nvidia's strong earnings results this week.

What are the experts saying?

Commenting on the US market pullback that's dragging ASX 200 tech stocks lower on Friday, Sameer Samana, head of global equities and real assets at Wells Fargo Investment Institute, said (quoted by Bloomberg):

The Nvidia results, while positive, weren't enough to dispel doubts around whether valuations had gotten too rich and whether the recent move towards debt-based financing meant the investment levels were too aggressive without enough focus on shareholder returns.

A number of analysts are also pointing to the huge pullback in the Bitcoin (CRYPTO: BTC) price, noting the world's first and biggest crypto could be a proverbial canary in a coal mine.

Steve Sosnick, chief strategist at Interactive Brokers Group, said, "One of the things I'm watching right now is Bitcoin back to flirting with US$90,000 because, like it or not, it's become a real proxy for risk tolerance overall among investors."

Chris Murphy, co-head of derivatives strategy at Susquehanna International Group, added (quoted by The Australian Financial Review), "With Nvidia earnings now behind us and the Fed unlikely to cut in December, investors are left questioning what remains to drive a year-end rally."

Still, with most ASX 200 tech stocks now well off their highs, I reckon it's only a matter of time before bargain hunters with long-term investment horizons begin to offer support.

The post Why are ASX 200 tech stocks getting smashed on Friday? appeared first on The Motley Fool Australia.

Bitcoin last peaked a little earlier than the ASX 200, climbing to a new record of just over US$126,000 in early October. Today, that same coin is worth just US$90,630 at the time of writing. That's a loss of almost 30% since that high just a few weeks ago.

Evidently, there has been a lot of selling happening here. With the cryptocurrency still up more than 443% at today's prices over the past three years, many investors probably would have been happy to take their money off the table when it looked as though the recent run was coming to an end.

But beyond pointing this out, it can be difficult to know, as it has always been, why the price of this volatile digital asset is swinging so hard.

Many investors who don't own Bitcoin, or perhaps already own it and are thinking about buying more, might be wondering whether it is time to jump back in right now.

That's an admirable mindset to have. After all, Warren Buffett always said to "be greedy when others are fearful". But that advice, as I'm sure Buffett would be at pains to tell us, applies only to high-quality stocks.

Bitcoin is a whole different ballgame.

When is it a good time to buy Bitcoin?

Bitcoin advocates have faith in these digital tokens for a variety of reasons. Some might think of it as the future of money, free from the manipulation of government-run central banks. Others might like its potential as a truly borderless, global currency that can be exchanged for goods and services all over the world.

However, I think Bitcoin's use in these contexts has yet to be fully proven. In my mind, there is only one truly desirable attribute to this cryptocurrency. That would be its finite supply.

As has been well documented, Bitcoin is built on the principle that it has a capped supply of 21 million coins. This gives the cryptocurrency some utility as a store of value.

That is a rare feature in our digital age. It is also why some investors describe Bitcoin as 'digital gold', given the precious metal's own rarity. As the supply of new Bitcoins continues to dwindle, I think it is likely that the cryptocurrency will realise its potential as an effective store of value. It is for this reason alone that I own some as a small proportion of my overall investing portfolio.

If you are of this mindset, then the current pullback might indeed represent a good opportunity to add to your stockpile. We know that supply will continue to tighten in the years ahead, and that could well be good news for its long-term price.

The post This is the only reason you should be buying Bitcoin right now appeared first on The Motley Fool Australia.

The world's first and biggest crypto has been under steady selling pressure since notching new record highs in early October.

At the time of writing on Monday morning, Bitcoin is trading for US$93,701 (AU$143,779), down 1.9% since this time yesterday. This sees the token commanding a current market cap of US$1.86 trillion.

While that's still an eye-popping valuation, the Bitcoin price is now down a painful 25.4% since hitting an all-time high of US$126,198 on 7 October, according to data from CoinMarketCap.

And it sees the token's 12-month gains pared down to 3.5%, slightly underperforming the 3.8% one-year gains delivered by the S&P/ASX 200 Index (ASX: XJO).

Bitcoin, and a handful of other cryptos, were among the biggest beneficiaries following Donald Trump's sweeping US presidential election win. Trump is a strong advocate of cryptocurrencies. In March, he signed an order to establish a strategic US crypto reserve.

So, what's going on with the price collapse?

What the experts are saying about the slumping Bitcoin price

According to Matthew Hougan, chief investment officer for Bitwise Asset Management (quoted by Bloomberg), "The general market is risk-off. Crypto was the canary in the coal mine for that, it was the first to flinch."

Indeed, while the Nasdaq Composite Index (NASDAQ: .IXIC) is still up 21.9% over 12 months, the tech-heavy US index is down 4.4% from its own October record closing highs.

"The sentiment in crypto retail is pretty negative," Hougan added. "They don't want to live through another 50% pullback. People are front running that by stepping out of the market."

Hougan also said that he views the Bitcoin price retreat as a buying opportunity.

Jake Kennis, senior research analyst at Nansen, noted (quoted by Bloomberg):

The selloff is a confluence of profit-taking by LTHs [long-term holders], institutional outflows, macro uncertainty, and leveraged longs getting wiped out. What is clear is that the market has temporarily chosen a downward direction after a long period of consolidation/ranging.

Chris Newhouse, director of research at Ergonia, reminded crypto investors that the material price swings we're seeing over the past month are par for the course in the world of crypto investing.

"The markets are always an ebb and flow, and cyclicality in crypto is nothing new," he said.

Taking a step back, the Bitcoin price remains up 462% over five years.

What about Ethereum?

Ethereum (CRYPTO: ETH), the world's second biggest crypto with a market cap of US$373 billion, has also not been spared the selling pressure that's hit the Bitcoin price.

The Ethereum price is down 2.1% over 24 hours at US$3,091.

That sees the Ethereum price down 37.6% since hitting its own all-time high of US$4,954 on 25 August.

The post Why is the Bitcoin price getting smashed? appeared first on The Motley Fool Australia.

But cryptocurrencies, or crypto for short, have rapidly become mainstream, with fluctuations particularly in Bitcoin reported on in the mainstream business press alongside the price of gold and major shares.

Crypto comes into the mainstream

Institutions have increasingly been willing to invest in cryptocurrencies, while retail investors are also investing heavily. New research from CoreData shows that 12% of adult Australians now have crypto investments, making it the third most popular investment, behind Australian shares and cash.

It also means that more Australians are now invested in crypto than in the real estate market (excluding the principal place of residence), with just 6% of investors putting money into bricks and mortar – a big swing from last year when real estate came in third.

The CoreData white paper, released recently, states that cryptocurrencies are increasingly becoming mainstream.

Once viewed as a speculative niche, CoreData's research finds crypto assets like Bitcoin and Ethereum are increasingly being integrated into the portfolios of everyday Australians. While cryptocurrencies remain a relatively young asset class, they are now over a decade on into their maturity, and market participants increasingly recognise them as a lasting fixture of the financial landscape. This shift is evident in the rise of institutional investment seen globally in recent years, as leading asset managers, pension funds, and banks expand their exposure — not only through direct holdings, but also via custody solutions, tokenised assets, and blockchain-enabled financial services.

Digital Wealth Group founder Sydel Sierra said she wasn't surprised by the findings of the CoreData research.

Ms Sierra added:

It's just too hard to argue with the returns. Bitcoin's compound annual growth rate over the past year is 75%; to put that in perspective, S&P 500's return in that same period was 15%.

ETFs lead to easy investing

One of the key drivers of cryptocurrency growth, the report states, is the ability for investors to purchase crypto exchange-traded funds (ETFs), rather than having to buy the assets directly via a crypto exchange.

Following ETF approvals in the U.S. and Europe, similar products such as the Global X 21Shares Bitcoin and Ethereum ETFs gained momentum in Australia, attracting interest from self-managed super fund (SMSF) trustees and financial advisers seeking new avenues for diversification.

Bitcoin ETFs available on the ASX include the aforementioned Global X 21Shares Bitcoin ETF (ASX: EBTC), the VanEck Bitcoin ETF (ASX: VBTC), and the Monochrome Bitcoin ETF (ASX: IBTC).

Like other ETFs, the provider charges a management fee, with the Global X ETF charging a fee of 0.45% for example.

That ETF holds Bitcoin on the Coinbase exchange and, as of the end of September this year, had $256.5 million invested.

The CoreData white paper says Bitcoin is the most favoured cryptocurrency, held by 78% of Australian crypto investors, which is not surprising given it has developed over time into a "trusted store of value''.

Other popular crypto investments include Ethereum, Ripple (CRYPTO: XRP), and Solana (CRYPTO: SOL).

As the report says:

For many, trust in Bitcoin stems not only from its historical performance and longevity, but also from the belief that it is more decentralised than other cryptocurrencies. Bitcoin's fixed supply of 21 million coins has also earned it comparisons to gold, a trait known as 'digital scarcity'. These distinctions have led many to argue that Bitcoin belongs in a class of its own.

The post How to join the more than 10% of Aussies now invested in cryptocurrencies appeared first on The Motley Fool Australia.

In afternoon trade on Thursday, Bitcoin is trading for US$103,020, up 1.6% since this time yesterday.

Wednesday saw the token tumble as low as US$98,962, according to data from CoinMarketCap.

That put the Bitcoin price down 21.6% since notching the record high US$126,198.07 on 7 October. And this saw the digital token enter a bear market, which is generally defined as any rapid price fall of more than 20%.

Still, longer-term holders should be sitting on some significant gains, with the price currently up 42% since this time last year.

And despite the past month's retrace, Bitcoin still commands a market cap of US$2.16 trillion (AU$3.32 billion).

To give you some idea of how big this crypto has become, Commonwealth Bank of Australia (ASX: CBA) – the biggest stock trading on the ASX – has a market cap of AU$296 billion. Meaning Bitcoin is valued at more than 11 times that of all outstanding CBA shares.

What are the experts saying about the Bitcoin price crash?

Zerocap's Mark Hiriart noted that Wednesday's Bitcoin price fall "marks a four-month low and tests the psychological US$100,000 support level".

"Short-term, it could be a local bottom if buyers defend here," Hiriart said. "There's a risk of further downside if US$100,000 fails, however."

In an important reminder to crypto investors, he cautioned, "In volatile drawdowns like this, discipline is paramount, as crypto's leverage amplifies emotions and some of these wild price swings."

Hiriart concluded:

Historically, November has been BTC's strongest month, but this 'healthy correction' aligns with patterns seen in prior cycles, where post-euphoria dips precede stronger legs up.

At Zerocap, we're viewing this as a rebalancing rather than a structural break, though vigilance on Fed liquidity signals remains key.

BTC Markets analyst Rachael Lucas believes the selling action may not be over yet (quoted by The Australian Financial Review).

"Bitcoin's plunge below $US100,000 isn't just a price dip, it's a signal that the market may be entering a new phase," Lucas said. "ETF outflows suggest major players are heading for the exits, with demand now trailing mining supply for the first time in seven months."

Here in Australia, however, Global X said the slumping Bitcoin price hadn't had much of an impact on ETF flows.

"This suggests that Australian investors may be adopting a more long-term perspective on digital assets than our counterparts across the Pacific," Global X investment analyst Justin Lin said.

The post Bitcoin price slide sends world's top crypto into bear market appeared first on The Motley Fool Australia.

Everyone wants exposure to artificial intelligence (AI), but the real constraint is not ideas or algorithms. It is power and compute capacity.

Iren provides the tangible infrastructure needed to run those workloads. The company has now landed a US$9.7 billion contract with Microsoft Corp (NASDAQ: MSFT) and has a US$30.1 billion backlog of work ahead. Investors tracking power expansion and megawatt energisation may find more insight than those focused on software headlines.

Powering up with cheap energy

At the heart of Iren's business model is a simple but powerful idea: secure the cheapest possible renewable energy and use it to run power-dense data centres.

The company began by using these data centres to mine Bitcoin (CRYPTO: BTC), a business where electricity cost defines competitiveness. With an average cost of just US$0.033 per kilowatt-hour, Iren ranks among the lowest-cost operators globally. By building facilities in areas with abundant or stranded power, such as hydro-rich British Columbia and wind-heavy Texas, the company has created structural advantages that rivals find difficult to replicate.

This model has produced a profitable foundation that now funds Iren's next chapter.

Pivot to AI cloud infrastructure

Iren is using profits from its Bitcoin operations to expand into AI cloud computing. The strategy is to self-fund new, liquid-cooled data centres and fill them with the latest Nvidia GPUs.

Today, Iren operates over 2,000 GPUs. By December 2025, that number is expected to rise to over 10,000, including thousands of Nvidia Blackwell B200 and B300 units. The company sees a long-term path to 20,000 GPUs, and potentially up to 60,000 in the years ahead.

Co-founder and co-CEO Daniel Roberts said in August that demand for Iren's AI cloud services is accelerating as the company prepares for the arrival of new Blackwell GPUs.

The Microsoft and Dell deals

The company's latest announcement takes that strategy to a new level. Iren has signed a multi-year, multi-billion-dollar agreement with Microsoft to deliver AI cloud capacity.

The contract covers 200 megawatts (MW) of infrastructure over five years and includes a US$2 billion upfront prepayment. Dell Technologies Inc (NYSE: DELL) will supply hardware and integration support for the new AI supercluster.

Execution remains key

Building AI training data centres is expensive and complex. Iren expects the total cost to be around US$14 million to US$16 million per MW, reflecting higher prices for GPUs, networking components, and power infrastructure. The company has been clear that supply chain constraints are adding pressure, but these challenges are industry-wide rather than specific to Iren.

Despite those costs, the economics of the Microsoft contract appear favourable. Prepayments will reduce financing risk, while ownership of both land and power assets gives Iren more control over delivery and margins.

A win for Australian innovation

It is rare to see an Australian-founded company play such a meaningful role in global technology infrastructure.

Iren sits at the intersection of two powerful trends: renewable energy and artificial intelligence. While execution will be closely watched, this latest deal shows how an Australian-owned business can compete on the global stage by combining cost discipline, innovation, and strategic positioning.

The post Australian data centre and compute stock surges on US$9.7 billion Microsoft deal appeared first on The Motley Fool Australia.

Both have been racing to new record highs.

Earlier today, the gold price once more broke into new all-time high territory. Spot gold was trading for US$3,998.75 per ounce, just a whisker away from the psychologically important US$4,000 mark. This sees the gold price up 53.3% since this time last year.

The Bitcoin price has enjoyed even stronger gains.

The world's biggest crypto notched its own record high yesterday, with the token trading for US$126,198.07, according to data from CoinMarketCap.

Bitcoin has retraced 3.6% since that fresh highwater mark, currently trading for US$121,410.06. Still, that sees the token up 94.4% since this time last year. And it gives Bitcoin a market valuation of US$2.4 trillion.

Commenting on the surging gold and Bitcoin prices, Josh Gilbert, market analyst at eToro, said, "Ultimately, investors are re-evaluating what money and value mean in a world of persistent fiscal strain and policy uncertainty."

Gilbert continued:

Central banks keep running expansive monetary policies, and global money supply keeps rising. The record highs in both gold and Bitcoin are a clear message that confidence in traditional currencies is fading, and investors are increasingly turning to alternative stores of value.

What's driving the Bitcoin price to new records?

The rise of crypto exchange-traded funds (ETFs) and institutional adoption are among the factors helping send the Bitcoin price to new highs.

"For Bitcoin, the break to new records comes after continued institutional accumulation, with over US$3.2 billion flowing through bitcoin ETFs in the last week," Gilbert said.

"What's changing is how investors view the asset. It's evolving from a volatile, speculative trade within diversified portfolios," he added.

Gilbert concluded:

Its performance in the last three years, alongside continued record highs this year, cements Bitcoin's position as a core component of the modern investment landscape. To be clear, this is still a risk asset, and the asset remains in its infancy, but each day, it continues to mature into an asset investors want to allocate towards.

How about the soaring gold price?

The Bitcoin price may have outpaced the gains set by the gold price, but that's not the case for many ASX gold stocks, which are leveraged to the price of the yellow metal.

While the gold price is up 53.3% in 12 months, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has rocketed 92.0%, with a number of prominent ASX gold stocks gaining far more.

Shares in ASX 200 gold stock Regis Resources Ltd (ASX: RRL), as just one example, are up 210.8% since this time last year.

Atop getting support from falling interest rates in most major economies, the gold price has charged higher amid the ongoing uncertainties driven by the shutdown of the United States government. And in recent days, France has thrown its hat into the ring, driving geopolitical uncertainty following the resignation of Prime Minister Sebastien Lecornu.

These events have also likely helped drive gains in the Bitcoin price.

Commenting on the fast-rising gold price, Ken Griffin, founder of hedge fund Citadel, said (quoted by The Australian Financial Review):

We're seeing substantial asset inflation away from the dollar as people are looking for ways to effectively de-dollarise or de-risk their portfolios, vis-à-vis US sovereign risk.

You see sovereigns around the world, the central banks around the world, as you see individual investors around the world go, you know what, I now view gold as a safe harbour asset in a way that the dollar used to be viewed. That's what's really concerning to me.

The post What's sending the gold and Bitcoin price to new record highs? appeared first on The Motley Fool Australia.