Bitcoin all-time high surge decoded: What's fueling the rise in cryptocurrency, could it hit $150,000, and what's next?

Bitcoin has surged to a new all-time high, briefly crossing $124,500 in early Asian trading on Thursday, marking a record run for the world’s largest cryptocurrency. The rally comes amid strong gains in US markets, regulatory changes under President Donald Trump, and growing involvement from large institutional investors.

Analysts say a combination of moderating inflation, expectations of a US interest rate cut, and structural buying from corporates, asset managers, and even sovereign entities have created a favourable environment for digital assets. Unlike past surges driven mainly by retail speculation, this rise reflects a broader shift in the market, with increased confidence from large-scale investors and companies like Tesla and Trump’s media group adding momentum to Bitcoin’s price.

Why Bitcoin is rising

Analysts say multiple factors are driving the surge. US stock markets have been strong this week, with both the S&P 500 and Nasdaq hitting new highs. At the same time, regulatory shifts under President Donald Trump have encouraged broader adoption of digital assets.

Samer Hasn, senior market analyst at XS.com, told AFP: “The crypto market is enjoying a period of highly favourable fundamentals.” He noted that Trump has eased restrictions that had previously prevented banks from working with cryptocurrency companies.

Institutional investors, often called “whales,” have also played a role. Large companies such as Trump’s media group and Tesla have purchased significant amounts of Bitcoin, boosting demand and adding momentum to the rally.

Market dynamics and investor behaviour

Expectations of a US interest rate cut in September have also influenced the surge. Lower rates make traditional assets less attractive, prompting investors to move capital into riskier options like Bitcoin.

Ben Kurland, CEO at DYOR, told Bloomberg: “Moderating inflation, anticipated rate cuts and unprecedented institutional participation through ETFs have created a strong tailwind.” He added that this rally is driven by structural buying from asset managers, corporates and sovereign entities, rather than retail speculation alone.

Bitcoin at $150,00? What could happen next

Analysts say the rally could continue if institutional interest remains strong and US monetary policy supports risk assets. However, Bitcoin remains highly volatile, and shifts in regulation, market sentiment, or interest rates could trigger sharp price changes.

"Corporate treasuries like MicroStrategy and Block Inc. continue to buy bitcoin," said IG analyst Tony Sycamore. "Technically, a sustained break above $125,000 could propel bitcoin to $150,000."

Investors are closely watching both global economic signals and corporate adoption trends to gauge whether Bitcoin’s record run can be sustained in the coming months.