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- Bitcoin hovers just below record highs as policy shifts and monetary expansion fuel optimism.
- Trump’s order allowing crypto in 401(k)s could channel massive retirement capital into Bitcoin.
Bitcoin, currently valued at $116,755.83, remains just 5.16% below its record peak of $123,091.61. Its last close above $120,000 came on July 23, leading investors to speculate whether a fresh all-time high is within reach in 2025.
Global economic fragility and questions around the artificial intelligence sector’s sustainability are being closely watched, yet several developments suggest further growth is possible. Analysts highlight three near-to-medium-term forces that could lift Bitcoin well beyond its $2.3 trillion market capitalization.
Some market observers believe Bitcoin could one day surpass gold’s $23 trillion valuation, while others think that full independence from tech stock trends will take longer due to early-stage adoption. Even without a major shift in investor sentiment, monetary policy changes may be creating the conditions for a new phase in its growth.
Soaring Money Supply Fuels Bitcoin Hedge Case
M2 money supply of the world’s top 21 central banks surpassed a record $55.5 trillion during July. The federal budget deficit during the first nine months of the financial year exceeded a staggering level of $1.3 trillion for the United States alone. Such figures have strengthened arguments for Bitcoin as a safe haven against currency debasements.
Nvidia’s stock market value rose to $4.4 trillion from March’s $2.3 trillion despite stagnant net income relative to six months before. The analyst consensus is that this might be a signal that conventional valuation measures are becoming less dominant in the wake of rising monetary expansion.
Even without a significant investor sentiment shift, this expansion offers a favorable environment for Bitcoin. The persistent correlation with tech stocks has not removed the bullish argument for a possible breakout.
Retirement Accounts Could Pour Billions Into Bitcoin
US President Donald Trump signed an executive order on Thursday to permit cryptocurrency and other non-traditional assets within 401(k) retirement savings accounts. 0G Labs co-founder and CEO Michael Heinrich described the amendment as having the potential to “unlock trillions in retirement capital for Bitcoin.” Bitwise chief investment officer Matt Hougan explained the move as transformative for the industry.
Currently, US spot Bitcoin exchange-traded funds contain $150 billion in assets, while gold ETFs hold $198 billion, as reported by Forbes. A surpass gold ETFs figures could solidify its position as a reserve asset even more.
However, retail demand has still not returned. Platforms like Coinbase and Robinhood remain off the top-10 app rankings, a position they first held back in November 2024. When the trigger for a retail recovery will be is unclear, although a recovery driven by private investors could be seen during 2025.
