Last Updated on July 11, 2025 by Olga Davis
Bitcoin Price Chart. Source: coinmarketcap.com
What Is a Bitcoin All Time High — and Why Does It Matter?
A Bitcoin all time high means that Bitcoin’s price has reached a level higher than ever before in its history. The previous high was around $113,000 — now we’re above $118,000.
Why does that matter?
Because for an asset to hit an ATH, the entire market must agree it’s worth more than ever. That only happens when:
- Demand is growing
- Supply is limited (Bitcoin has a fixed cap of 21 million)
- Investors — especially large ones — are willing to hold or buy more, not less
It’s a collective signal: something fundamental has changed.
Why Is Bitcoin Going Up? 1. Institutional Money Is Flowing In
Over the past six months, professional investors — hedge funds, asset managers, and corporations — have been steadily buying Bitcoin.
They’re not just buying it on crypto exchanges. They’re using spot ETFs (exchange-traded funds) — investment products that allow traditional investors to gain exposure to Bitcoin without holding it directly.
Source: PHOENIX – Crypto News & Analytics
Here’s what that looks like:
- $510 million in ETF inflows this week alone
- Total assets under management in U.S. Bitcoin ETFs: $148 billion
- 21+ public companies added BTC to their treasuries since May
Example companies:
- Sequans Communications is building a 3,000 BTC reserve
- K Wave Media secured $1 billion in capital to buy Bitcoin as part of a strategic treasury shift
❓ What’s a treasury allocation?
That’s when a company buys Bitcoin and holds it as part of its cash reserve — the way it might hold dollars, euros, or gold. It’s a long-term commitment.
This type of buying is slow, steady, and deeply researched — not driven by hype. And when institutions buy, they don’t just add to the price — they legitimize the asset.
Why Is Bitcoin Going Up? 2. Government Policy Is Quietly Supporting It
Surprisingly, much of the momentum is political.
In early 2025, the U.S. government established a Strategic Bitcoin Reserve — a state-held wallet containing over 200,000 BTC, originally seized in law enforcement actions and now formalized as a national asset.
This decision matters for three reasons:
- It means Bitcoin is now seen as a strategic resource.
- It implies long-term state-level interest in digital assets.
- It signals that Bitcoin is unlikely to face a U.S. ban or hostile regulation.
Add to that:
- The Trump administration supports regulated Bitcoin ETFs.
- Several lawmakers are pushing bills (like GENIUS and STABLE) to create clear rules for crypto taxation and trading.
❓ Why is that important?
Regulatory clarity removes fear. When investors know the rules won’t change overnight, they’re more likely to invest — especially with large amounts.
Why Is Bitcoin Going Up? 3. Global Economic Conditions Are Changing
This part might sound abstract, but it’s critical.
A. Real-world money is losing ground
- Inflation remains elevated in many economies
- Central banks are under pressure to cut interest rates again
- Confidence in fiat currencies like the U.S. dollar or euro is softening
When traditional assets (like bonds) yield less and central banks print more money, investors start looking for non-inflationary assets.
That’s where Bitcoin comes in.
B. Bitcoin is increasingly seen as “digital gold”
- It’s scarce: only 21 million will ever exist
- It’s global and not tied to any one country
- It’s hard to seize or censor
So when economic or geopolitical risks rise — such as new U.S. tariffs, conflict, or trade tensions — investors shift capital into Bitcoin as a hedge.
Bitcoin All Time High: Liquidations Spark the Surge
Beyond the fundamental reasons, there’s also a technical market effect.
As Bitcoin approached $115,000, many traders betting on a price drop (“short sellers”) were forced to exit their positions. This caused a short squeeze — a feedback loop of buying under pressure.
- Over $1 billion in short positions were liquidated in 48 hours
- More than 230,000 traders lost positions across major exchanges
❓ Why does that matter?
Short squeezes don’t start rallies — but they often make them more dramatic in the short term.
Expert Insight: Why This Bitcoin All Time High Is Different
For an expert view on Bitcoin’s rapid climb, we consulted Bassam G, CBDO at Guardarian, who shared his insights on the market dynamics:
This cycle stands out due to a shift from retail speculation to strategic institutional allocation. The approval of spot ETFs in 2024, which attracted over $12 billion in inflows (per Bloomberg), removed barriers like custody and compliance, positioning Bitcoin as a legitimate portfolio asset alongside gold or other alternatives. Companies like MicroStrategy are increasingly holding Bitcoin on their balance sheets, signaling a profound structural shift. In today’s macro environment—marked by 3–4% inflation in the US, low real bond yields, and fiat currency uncertainty—Bitcoin’s role as a finite, independent monetary system is more relevant than ever. Technological advancements, such as the Lightning Network, enhance its scalability, boosting business adoption. Regulatory clarity, like the EU’s MiCA framework, further fuels institutional interest, though uncertainties in the US pose risks. Meanwhile, Bitcoin is gaining traction as a symbol of financial freedom for younger generations and a hedge in emerging markets like Argentina and Nigeria, where local currencies falter. Still, volatility and competition from other cryptocurrencies remain challenges. The price reflects this unique moment, as Bitcoin cements its place as a global asset.
