Bitcoin rallies past $116k, surges 25% YTD; what's next for flagship coin?

Bitcoin (BTC) continued its northward march for yet another session and surpassed the $116,000 mark to scale a new all-time high of $116,893 on Friday, July 11, 2024, eclipsing its previous records. Notably, so far year to date, the flagship currency has posted a rally of 25 per cent.

 

The rally in Bitcoin, market analysts said, is being driven by a confluence of macroeconomic factors including anticipated US rate cuts, a weakening dollar, and ongoing trade negotiations, alongside rising institutional participation, clearer regulations in key markets, and continued progress in Web3 infrastructure and tokenisation.

 

At last check, Bitcoin was trading around $116,889, higher by 5.11 per cent, with a 24 hour trading volume of a whopping $101.07 billion. Bitcoin's market capitalisation soared to $2.32 trillion, the highest among all cryptocurrencies. 

 

 

The world’s most popular cryptocurrency has fluctuated in the range of $110,660.75 to $116,893.25 in the last 24 hours, according to data from CoinMarketCap. 

What's driving Bitcoin in 2025?

Bitcoin’s surge to a new all-time high above $116,000 signals growing confidence in crypto, driven by rising institutional demand and supportive signals from the Donald Trump administration in the US, said Ashish Singhal, Co-founder, CoinSwitch. Singhal attributes the rally to macroeconomic factors like anticipated US rate cuts, a weaker dollar, trade negotiations, and increasing institutional participation.

 

“Bitcoin’s breakout past key resistance levels marks a structural shift in market confidence,” said Singhal.

 

Echoing similar views, Kushal Manupati, regional growth and operations lead for South Asia, Binance, pointed to greater institutional involvement, clearer regulations, and advancements in Web3 and real world asset tokenisation as key drivers.

 

“This is not just retail driven. It shows Bitcoin’s growing role in traditional portfolios as a legitimate store of value,” said Manupati, highlighting positive regulatory signals from the US, European Union, and parts of Asia.

Will the Bitcoin rally continue?

Market analysts remain optimistic on the flagship currency's outlook for the remainder of 2025. Though analysts expect short term volatility, particularly around policy announcements or global events, the structural shift in sentiment and adoption, they said, is real.

 

Commenting on the outlook for Bitcoin, Singhal said that much of Bitcoin's journey will depend on how global macroeconomic trends play out, especially US interest rate cuts, inflation data, and geopolitical developments. "If the Federal Reserve moves ahead with easing rates, it could further boost investor interest in risk on assets like Bitcoin. On the regulatory front, clarity is slowly emerging across major markets, including India, which could encourage broader participation from institutional and retail investors," said Singhal. 

 

If current momentum continues, Singhal believes Bitcoin could remain one of the best performing assets of 2025.

 

Echoing this, Manupati said that growing institutional participation, maturing global regulatory frameworks, and increasing integration into traditional financial systems further shape the course of the flagship currency in the coming months.

 

"As adoption continues to expand, both institutional and retail investors appear to be showing more strategic, long term involvement, viewing Bitcoin not just as a short term investment but as a legitimate store of value and portfolio diversifier," said Manupati.

 

Further, the regulatory clarity in major markets, analysts said, will encourage responsible innovation and attract capital inflows into the ecosystem. Infrastructure improvements such as secure custody solutions, tokenisation platforms, and scalable blockchain networks could further enable stable, compliant growth.