World gobsmacked as Bitcoin goes ballistic

Everyone had written Bitcoin off after a torrid couple of months. Now the unthinkable has happened.

It was only a matter of months ago that everyone had written Bitcoin off.

With the election Donald Trump last year, optimism over the digital asset had soared — as he had vowed to be a champion on crypto and create strategic reserve of Bitcoin (BTC) for the US.

Much of that excitement dissipated in the months that followed as the value of the biggest digital asset, and all major cryptos for that matter, took a plunge.

However, overnight something remarkable happened.

The asset hit a record high this morning, Australian time, of $110,524 driven by a wave of optimism over cryptocurrency legislation in the United States.

Experts have hailed the surge as a “major milestone”.

Edward Carroll, Head of Global Markets and Corporate Finance at MHC Digital Group, claimed Bitcoin is now on track to reach US$160,000 by Q4 2025 and US$1 million by 2030.

“We firmly believe BTC is increasingly decoupling from its correlation to risk assets and beginning to behave more like an independent, reliable asset allocation - particularly in times of uncertainty,” he said. “The fact that BTC rallied overnight despite a weak US Treasury auction and poor equity performance may be an indicator of this shift.With a fixed supply dynamic and growing demand driving the price higher in the medium-term, we see significant upside from here. We maintain our view that BTC will reach at least US$160,000 by Q4 2025 and US$1 million by 2030 as this thesis plays out.”

Bitcoin hit an all-time high this morning.

Caroline Bowler, CEO at BTC Markets, said the rise overnight “reflects a mature interest in digital assets worldwide, not the speculative surge seen in past cycles”.

“Today’s demand is driven by institutional-grade infrastructure and stronger regulatory clarity,” she said. “Investor sentiment has shifted decisively, reflecting institutional-style allocations.

“US-listed ETFs are seeing strong inflows, particularly BlackRock’s IBIT with over US$600 million recently. Bitcoin’s market cap is now US$2.17 trillion. It ranks among the largest and most liquid global assets.

“Macro conditions are also playing a role. Easing US-China trade tensions are lifting risk appetite.

“Here in Australia, interest in regulated digital access is growing. Investors want secure, compliant ways to engage with digital assets. The foundations for broader adoption are in place. We expect the next growth phase to be sustained and widespread.”

All this should come with a warning though. Experts have long warned Bitcoin and, in particular, other cryptos are highly speculative — meaning you could lose a tonne of money if you’re not careful.

The Trump effect

The world’s most popular cryptocurrency’s peak this morning took it above its previous high set on January 20 when Donald Trump was sworn in as US president.

Bitcoin gained after US policymakers showed greater bipartisan support for a cryptocurrency bill on the regulation of so-called stablecoins, digital coins whose value is tied to the dollar, according to analysts.

This has sparked fresh hopes for regulatory clarity in the sector, including for Bitcoin which is not directly linked to the dollar.

The digital currency has also been buoyed by a more favourable macroeconomic environment, as investors’ appetite for riskier assets has returned following an easing of tensions between the US and its key trading partners.

President Trump vowed to support crypto currencies during his campaign for a second White House term.

People walk past a cryptocurrency exchange office with a screen featuring US President Donald Trump holding cryptocurrency coins in Hong Kong on March 12, 2025. (Photo by Mladen ANTONOV / AFP)

But a wave of US tariffs unleashed on countries around the world dampened financial markets, causing a wave of uncertainty.

Bitcoin broke back through the symbolic $100,000 threshold on May 8 for the first time since February, as Britain and the United States unveiled a trade deal.

Cryptocurrencies have made headlines since their creation, gaining attention for their extreme volatility and the collapse of several industry giants, foremost among them the FTX exchange platform.

The digital currency is created — or “mined” — as a reward when powerful computers solve complex problems to validate transactions made on a meddle-proof register known as the blockchain.