Beautiful Virgin Islands

Tuesday, Jun 03, 2025

Bitcoin hits new all-time high above $23,000, extending its wild 2020 rally

Bitcoin hits new all-time high above $23,000, extending its wild 2020 rally

Bitcoin's price is now up more than 200% since the start of the year.
Bitcoin hit a fresh record high above $23,000 on Thursday, extending a wild rally for the cryptocurrency that has seen it more than triple in value this year.

The world’s most-valuable digital currency surged 12% to $23,421, according to crypto market data provider Coin Metrics, taking its year-to-date gains to more than 200%. Bitcoin only just smashed the $20,000 mark on Wednesday.

Bitcoin later pared back its gains slightly, trading over 9% higher at about $22,787 by 7:30 a.m. ET.

Crypto bulls have pointed to increased demand from institutional investors, pitching bitcoin as a hedge against inflation like gold amid unprecedented U.S. coronavirus stimulus. A recent JPMorgan note claimed such investor appetite would boost inflows into funds tracking bitcoin to the detriment of gold.

On Tuesday, U.K. asset manager Ruffer revealed it had around 2.5% of its portfolio invested in bitcoin “as a small but potent insurance policy against the continuing devaluation of the world’s major currencies.” The company managed £20.3 billion ($27.6 billion) in assets by the end of November.

Bitcoin’s 2020 performance has reminded many market watchers of its frenzied rally to nearly $20,000 in 2017, which was followed by a sharp pullback the following year. However, crypto fans claim this year’s rally is unlike 2017 as it’s being driven by institutional buying rather than retail speculation.

“This run is completely different to the one in 2017,” said Eric Demuth, CEO and co-founder of cryptocurrency trading app Bitpanda. “Back then, the price was driven by mainly retail investors.”

“Now, we additionally have billionaires praising bitcoin and investment funds securing significant positions worth hundreds of millions. The big players that were once very distant from bitcoin and were outspoken critics are now joining in with the run.”

Well-known investors like Paul Tudor Jones and Stanley Druckenmiller have come out as believers in bitcoin this year, while large financial companies like PayPal and Fidelity have also made moves in the space. Meanwhile, the likes of Square and MicroStrategy have used their own balance sheets to buy bitcoin.

“Our flows are now probably up six times what they were last year, and the types of investors that are putting capital to work are unlike any of the investors we’ve seen ever before,” Michael Sonnenshein, managing director of digital asset manager Grayscale, told CNBC. “It’s some of the world’s largest investors.”

Grayscale’s Bitcoin Trust has become a popular investment vehicle for investors looking to put money into the cryptocurrency. The trust, which is traded over-the-counter rather than on a national securities exchange, managed $10.8 billion in assets as of Dec. 14.

On Wednesday, Guggenheim Investments’ Chief Investment Officer Scott Minerd gave a $400,000 price target for bitcoin, citing its scarcity and relative valuation to assets like gold. However, it’s worth noting some investors made lofty calls about the bitcoin price in 2017 that ultimately didn’t come to fruition in 2017.

Skeptics see bitcoin as a speculative asset with no intrinsic value, with investors like billionaire Berkshire Hathaway CEO Warren Buffett saying trading in the digital currency is more akin to gambling.
Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Harvard Urges US to Unfreeze Funds for Public Health Research
Businessman Mauled by Lion at Luxury Namibian Lodge
Researchers Consider New Destinations Beyond the U.S.
53-Year-Old Doctor Claims Biological Age of 23
Trump Struggles to Secure Trade Deals With China and Europe
Russia to Return 6,000 Corpses Under Ukraine Prisoner Swap Deal
Microsoft Lays Off Hundreds More Amid Restructuring
Harvey Weinstein’s Publicist Embraces Notoriety
Macron and Meloni Seek Unity Despite Tensions
Trump Administration Accused of Obstructing Deportation Cases
Newark Mayor Sues Over Arrest at Immigration Facility
Center-Left Candidate Projected to Win South Korean Presidency
Trump’s Tariffs Predicted to Stall Global Economic Growth
South Korea’s President-Elect Expected to Take Softer Line on Trump and North Korea
Trump’s China Strategy Remains a Geopolitical Puzzle
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
×