Bitcoin hits new high as investor appeal widens

Bitcoin has surged to a new all-time high - breaking through $111,000 for the first time.

It means every single person who has bought it since 2009 (and held onto it) will be sitting on a profit. The surge follows a pretty dramatic 2025 for Bitcoin (BTC), with Donald Trump's presidency making this digital asset even more volatile than usual.

Money latest: How travel insurance costs can spike BTC had first managed to hit $109,000 on 20 January - the day Mr Trump was inaugurated - with investors hopeful that he would introduce a slew of pro-crypto policies. Despite the president coming good on some of those promises, the world's biggest cryptocurrency soon fell, amid accusations these policies didn't go far enough.

The White House has confirmed the US will treat Bitcoin seized from criminals as an investment, but there was disappointment when it was confirmed the government would not be buying additional coins for its "strategic reserve" using taxpayers' money. Bitcoin also took a battering in the immediate aftermath of Mr Trump's controversial "Liberation Day" tariffs - slumping to lows of $75,000 in April as investors dumped riskier assets.

There are several factors behind this recent comeback, with laws designed to regulate the crypto sector now advancing through the US Senate for the first time. Interest in Bitcoin is also growing among hedge funds and financial institutions, while some companies are now in a race to buy as much of this cryptocurrency as possible.

One company called Strategy now has a war chest of 576,230 BTC worth $63bn - resulting in handsome profits of more than $23bn. Part of BTC's appeal lies in how it has a limited supply of 21 million coins, whereas the amount of traditional currencies in circulation often increases over time.

The latest milestone will likely contribute to a euphoric atmosphere when the president hosts a controversial dinner tomorrow for 220 of the biggest investors in $TRUMP, his very own cryptocurrency. It also coincides with Bitcoin 2025 - the biggest crypto conference in the world - which is due to begin in Las Vegas on Tuesday - and growing financial market concerns about the size of the US government's ballooning debt pile.

Nigel Green, chief executive of global financial advisory firm deVere Group, expects Bitcoin to set new milestones in the coming months. "$150,000 no longer looks ambitious - it looks cautious," he wrote in a note.

"Several forces have aligned to propel the market. A cooler-than-expected US inflation print, an easing in trade tensions between Washington and Beijing, and the Moody's downgrade of US sovereign debt have all steered investors toward alternatives to traditional fiat-based stores of value.

"Bitcoin, often likened to digital gold, is soaking up that demand. "In a world where sovereign credibility is fraying, investors are shifting decisively into assets that can't be diluted or manipulated.

Bitcoin has become not just a speculative play, but a strategic hedge.".