22-5-2025 – Bitcoin has shattered its January record, touching $110,545 on Binance’s trading platform. This milestone coincides with gold’s ascent to $3,312 per ounce, marking a 0.6% uptick, as investors grapple with mounting global economic uncertainties.
The Japanese financial landscape has become particularly telling, with unprecedented yields on long-dated government bonds. The 30-year and 40-year Japanese Government Bonds have soared to 3.14% and 3.6% respectively, following lacklustre bond auctions that have cast a spotlight on Japan’s precarious debt position.
Institutional engagement with Bitcoin continues to strengthen, evidenced by substantial inflows into US-listed spot Bitcoin ETFs, accumulating nearly $1 billion across two trading sessions. Eric Demuth, at the helm of Bitpanda, emphasises Bitcoin’s evolution from a peripheral investment to a cornerstone of modern finance.
The cryptocurrency’s performance has increasingly mirrored that of gold rather than conventional risk assets, particularly US equities. MacroScope’s analysis reveals Bitcoin’s superior returns compared to gold since March, potentially heralding a new era of cryptocurrency dominance in safe-haven investments.
America’s fiscal outlook appears increasingly precarious as national debt edges towards £36 trillion, with crucial policy decisions looming in 2025. Without substantial reforms in taxation and expenditure, experts caution that debt levels could breach 120% of GDP within the decade, exacerbated by rising borrowing costs and political deadlock.
Corporate entities, including MicroStrategy and MARA Holdings, are bolstering their Bitcoin reserves, whilst sovereign nations are predicted to accelerate their cryptocurrency accumulation strategies. This growing institutional appetite could potentially create significant supply constraints.
BitMEX co-founder Arthur Hayes projects an optimistic trajectory for Bitcoin, suggesting possible valuations between $150,000 and $200,000, potentially catalysing superior performance in alternative cryptocurrencies. His bold forecasts extend to $250,000 by year-end, with an ambitious $1 million target by 2028.
