Bitcoin has recently set an all-time high, crossing the $120,000 mark in July 2025. This increase is partly a result of recent shifts in the cryptocurrency market. We have witnessed an unprecedented wave of institutions adopting crypto, the introduction of new regulations, and support from influential figures. This bullish trend in the price of Bitcoin further illustrates its increased acceptance and legitimacy as a mainstream asset.
The cryptocurrency’s road to this point has been volatile but increasingly legitimate. Besides these political endorsements, Bitcoin’s limited supply and technological underpinnings have all played a part in bringing Bitcoin to its current valuation.
Bitcoin’s price crossed the $100,000 mark for the first time in December 2024, marking a stunning comeback for the world’s first true digital currency. That firestorm of good karma carried on all the way through 2025, peaking in mid-July at $120,000 and change. Several factors have fueled this impressive growth.
One thing that makes Bitcoin special is its predetermined scarcity. The cryptocurrency is programmed to eventually have no more than 21 million coins in existence. The most important factor that increases its value is scarcity. This distinct characteristic of cryptocurrency protects it from traditional forms of fiat currencies that can be affected by inflation.
The majority of the 21 million hard-capped Bitcoins are already in circulation. The rest of the coins will eventually be distributed via a process known as mining. This process helps to ensure new coins enter the market in a secure manner, while validating and securing the Bitcoin network.
The Bitcoin network runs on blockchain technology, a distributed ledger that automatically records every transaction in a transparent and decentralized manner. This technology makes up the backbone for many digital assets. Non-fungible tokens (NFTs) might be the best example, illustrating the technology’s versatility and numerous potential applications.
Given the energy-intensive process of Bitcoin mining, which takes an immense amount of computational power, the negative environmental impacts are concerning. This has led to increased environmental scrutiny and inspired conversations around developing more sustainable mining practices.
Miners receive Bitcoin as a reward when they validate transactions. This reward is halved about every four years, a process known as “halving.” This event, called “halving,” is intended to reduce the influx of new Bitcoins even more by cutting their supply in half.
The next Bitcoin halving will be on April 20, 2024. After this event, the miners reward was cut from 6.25 bitcoins to 3.125 bitcoins.
The halving events have been followed by price increases, in part because a reduced supply of new coins is introduced to the market. The most recent halving, along with several other market conditions, seems to have played a key role in this latest price spike.
Political factors are important too. There’s no doubt that political factors have driven Bitcoin’s recent performance. US President Donald Trump has definitively set the agenda. His big goal is to make the United States the “crypto capital of the world.” This represents quite an about-face on his earlier positions on Bitcoin.
The former president famously called Bitcoin a “scam” in 2019. He’s somewhat reversed course and in fact rolled over completely, acknowledging the increasing importance of cryptocurrencies. This shift in posture has largely been seen as a positive and welcome shift by many in the crypto space.
Today, the US government’s position on Bitcoin has changed pretty dramatically. After waiting three years for approval, in January 2024 the US government did approve a number of spot Bitcoin Exchange Traded Funds (ETFs). This decision marked a watershed moment, providing institutional investors a way to get exposure to Bitcoin without having to hold the underlying cryptoasset.
The introduction of Bitcoin ETFs has increased liquidity and accessibility, attracting more traditional financial institutions and investors to the market. This new influx of capital has continued to drive up the price of Bitcoin.
For people who want to invest in Bitcoin, knowing how to store your BTC is an important part of the equation. Bitcoin can be stored in two primary types of wallets: hot wallets and cold wallets.
Hot wallets are digital wallets that are always connected to the internet. They provide very convenient access to your Bitcoin but are notoriously insecure compared to cold wallets.
Cold wallets, by contrast, are devices stored offline. These wallets offer more protection than other forms of wallets since they are not as susceptible to hacking and online dangers.
Crypto exchanges are digital marketplaces, similar to stock markets, where traders can buy, sell, and exchange cryptocurrencies, including well-known coins like Bitcoin and Ethereum. These exchanges work just like your regular brokerage account, where you can trade real-world currency for digital assets.
As you might be aware, Bitcoin’s price is extremely volatile. Investors should remain vigilant and do their homework to avoid scams and pitfalls before investing. We all know that the crypto market can be a little volatile, and things can swing in a matter of minutes.
As mentioned before, the emergence of meme-coins and other speculative crypto assets have further cultivated the spotlight surrounding the market. While many others still perceive these behaviors as innocent amusement. Some people argue that they take the focus away from the true value of Bitcoin and other established cryptocurrencies.
"A mockery" - refers to Trump's meme-coin
The real future of Bitcoin remains to be seen. Given its rocky history, its new successes and increasing acceptance seem to suggest it is becoming a legitimate participant in the global financial system. The balance of technological innovation, regulatory advancements, and political support will further determine its path going forward.
