I had not written about Bitcoin for Barchart since mid-February 2025, when I concluded:

Bitcoin and cryptocurrencies are not for the faint of heart. The potential for oversized rewards comes with commensurate risks. While the Trump administration has shown significant support for the asset class, market forces could create the conditions for another significant percentage correction in the blink of an eye. The bullish trend since the 2010 low continues, but the odds favor a continuation of a wild ride in the leading digital currency.  

Bitcoin was trading at $95,441.59 on February 17. Since then, the price dropped to below $75,000 in April before rising to new highs in May. 

Risk-off sent Bitcoin lower

On April 2, 2025, U.S. President Trump declared “Liberation Day,” announcing tariffs on worldwide trading partners. The trade barriers sent markets across all asset classes lower, and Bitcoin was no exception. 

The 2025 daily chart shows Bitcoin’s decline below $75,000 per token on April 7, which turned out to be a significant bottom. 

A rally to new highs

After reaching its low on April 7, Bitcoin turned higher, rallying to a new record high. 

The monthly chart highlights Bitcoin’s rally to a new high of $11,946.39 per token in May 2025. Bitcoin exploded over 50% higher from the April 7 low. 

The U.S. administration is all-in on crypto

The Trump administration has supported cryptocurrencies, igniting a bullish fuse under Bitcoin and many other digital currencies in 2025. The asset class’s market capitalization is now comfortably above the $3 trillion level, with Bitcoin’s market capitalization accounting for nearly 63% of the total. 

Cryptocurrencies and their market cap could have significant upside potential, considering the market capitalization of leading publicly traded companies. 

The entire cryptocurrency market cap is currently equivalent to that of the top company, Microsoft (MSFT), and accounts for less than 3% of the largest company’s total market cap. 

Systemic risks and regulatory factors

As cryptocurrencies increase in value and the asset class’s market cap grows, expect legislators in the United States and worldwide to push for increased regulation. The addressable market for cryptos has increased, and further growth combined with the extreme price volatility could create systemic risks for the global financial system. 

Systemic risk refers to the potential for a financial crisis triggered by the collapse of one part of the system, resulting in a domino effect and ultimately leading to a broader collapse. When investors and traders lose money and assets decline in value, they often sell other assets to cover the losses. Calls for increased regulation are likely to rise as the cryptocurrency market cap increases. 

The trend is your friend

The ascent of Bitcoin and gold in 2025 is a commentary on the erosion of confidence in government-issued foreign exchange and sovereign debt. Gold has rallied from $252.50 in 1999 to over $3,300 per ounce in 2025, and Bitcoin has exploded from $0.05 in 2010 to over $104,000 per token. Gold and Bitcoin have experienced parabolic rallies. As no single government controls global assets, the rallies are a watershed event and a sign that the full faith and credit of governments have declined. Moreover, countries have increased their gold reserves, with many adding or considering Bitcoin and other crypto assets as reserve assets. 

The trend in Bitcoin remains bullish in June 2025, but as market participants have learned, the market is highly volatile, experiencing boom-and-bust price action over the past few years. Buying Bitcoin on dips has been optimal, and I expect that trend to continue. 

Aside from physical Bitcoin, other cryptocurrencies, along with assets and derivatives, including futures, ETFs, and crypto-related equities, move higher and lower in tandem with the digital currency asset class. Market participants have many choices when it comes to exposure to the burgeoning asset class.