Bitcoin made history on Wednesday as its price surged past $35,000 for the first time, reaching an intraday high of $35,879—exceeding its previous peak of $34,792 set just days earlier. This milestone comes amid growing institutional adoption, macroeconomic uncertainty, and rising investor confidence in digital assets as a long-term store of value.
Just two days prior, Bitcoin had suffered its largest single-day drop since March, plunging nearly 17% and briefly falling below $30,000. Yet the rebound has been equally dramatic, underscoring the cryptocurrency’s volatility—and its increasing resilience in the face of market corrections.
The Driving Forces Behind Bitcoin’s Surge
Several interconnected factors are fueling Bitcoin’s latest rally:
- Historic monetary stimulus and near-zero interest rates worldwide have pushed investors toward alternative assets.
- Inflation hedging demand is rising as concerns grow over the devaluation of fiat currencies.
- Fixed supply mechanics: With only 21 million Bitcoins ever to be mined, scarcity is intensifying as adoption grows.
- Institutional inflows from hedge funds, asset managers, and public companies are legitimizing crypto as a viable asset class.
- FOMO (Fear of Missing Out) continues to drive retail participation, especially during breakout price movements.
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Institutional Endorsements Fuel Optimism
One of the most significant catalysts behind the renewed momentum is the growing chorus of support from Wall Street heavyweights. Among them is Anthony Scaramucci, founder of SkyBridge Capital, who boldly stated that Bitcoin could rise tenfold from current levels.
Scaramucci argues that Bitcoin is “better than gold” due to its portability, ease of storage, and resistance to theft when properly secured. He believes that if Bitcoin reaches just half the market capitalization of gold—approximately $5 trillion—the price could soar accordingly. Given Bitcoin’s current market cap of around $650 billion (as of early 2025), such growth would represent a roughly 10x increase.
SkyBridge itself entered the space with the launch of a new Bitcoin fund targeting accredited investors, requiring a minimum investment of $50,000—signaling deeper institutional integration.
JPMorgan’s Bullish Long-Term Outlook
In a recent research report, JPMorgan highlighted Bitcoin’s potential to compete directly with gold as a “monetary alternative.” The bank estimates that for Bitcoin to match the $2.7 trillion held in private-sector gold investments, its market cap would need to expand nearly fivefold—to about $2.7 trillion. That implies a Bitcoin price target of $146,000 in the long run.
However, analysts caution this transition won’t happen overnight. Convergence between Bitcoin and gold volatility—and acceptance—will likely take years. Still, the trajectory is clear: more institutions are viewing Bitcoin not as speculative tech, but as digital gold.
Why This Rally Feels Different
Veteran crypto market observer Vijay Ayyar, Business Development Head at Luno, noted that while Bitcoin is clearly in a bull phase, this cycle reflects greater maturity.
“This is undeniably a bull market,” Ayyar said. “But unlike 2017, we’re seeing far larger players entering the space. The market structure is evolving. That said, we are in a parabolic phase—prices are reaching extreme levels quickly.”
Indeed, 2020 saw Bitcoin’s value quadruple, with gains exceeding 800% since March—a period marked by unprecedented economic disruption and digital transformation.
Core Keywords Driving Market Sentiment
To understand where Bitcoin stands today—and where it might go—consider these essential keywords shaping the conversation:
- Bitcoin price prediction
- institutional adoption
- digital gold
- crypto market cap
- inflation hedge
- long-term investment
- volatility analysis
- financial decentralization
These terms reflect both investor curiosity and strategic positioning in portfolios seeking diversification beyond traditional assets.
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Market Skepticism: Is This Another Bubble?
Despite growing enthusiasm, skepticism remains strong. Prominent critics warn that Bitcoin’s rapid ascent mirrors past financial bubbles.
David Rosenberg, founder of Rosenberg Research and former Merrill Lynch chief economist, called Bitcoin a “gigantic bubble,” citing its parabolic price action as unnatural for any financial asset.
Similarly, economist Nouriel Roubini—famously known as “Dr. Doom” for predicting the 2008 crisis—has repeatedly dismissed Bitcoin as valueless and manipulated by whales. He claims the asset lacks intrinsic fundamentals and is nearing collapse.
While these warnings carry weight, they also echo sentiments expressed during earlier stages of technological disruption—from the dot-com era to the rise of smartphones.
A Tale of Two Perspectives
The divide in opinion underscores a broader shift: traditional finance versus decentralized innovation. On one side are those who see Bitcoin as an unregulated, volatile fad. On the other are believers who view it as a revolutionary hedge against systemic risk and monetary debasement.
Yet even skeptics can’t ignore the data: major corporations like Tesla, MicroStrategy, and Square have allocated billions to Bitcoin. Payment giants such as PayPal and Visa now support crypto transactions. Regulatory frameworks are slowly emerging across jurisdictions.
This isn’t just speculation—it’s infrastructure being built.
Frequently Asked Questions (FAQ)
Q: What caused Bitcoin to break $35,000?
A: A combination of institutional buying, inflation fears, limited supply, and increased mainstream acceptance contributed to the breakout. Analysts also cite JPMorgan’s $146,000 price forecast as a sentiment booster.
Q: Is Bitcoin really a better store of value than gold?
A: Proponents argue yes—due to its portability, verifiability, and fixed supply. Unlike gold, Bitcoin can be transferred globally in minutes without intermediaries.
Q: Could Bitcoin crash again after such a sharp rise?
A: Absolutely. Bitcoin is highly volatile. Past rallies have been followed by corrections of 30–50%. Investors should prepare for swings and adopt risk-managed strategies.
Q: How do experts justify a $146,000 Bitcoin price target?
A: JPMorgan’s math hinges on Bitcoin capturing a similar market cap to private gold holdings. With gold at ~$2.7 trillion and ~19 million Bitcoins in circulation, the per-coin value aligns closely with that projection.
Q: Are retail investors still driving the market?
A: While retail interest remains high, institutional capital now plays a dominant role—bringing stability and longer holding periods compared to speculative traders.
Q: What risks should I consider before investing in Bitcoin?
A: Key risks include regulatory changes, cybersecurity threats, technological shifts (like quantum computing), and macroeconomic factors affecting risk appetite.
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Final Thoughts: A New Era for Digital Assets
The surge past $35,000 marks more than a price milestone—it signals growing confidence in decentralized finance and digital scarcity. Whether or not Bitcoin reaches $146,000 or achieves parity with gold depends on adoption curves, regulatory clarity, and global macro trends.
But one thing is certain: Wall Street can no longer afford to ignore it.
From hedge fund legends like Paul Tudor Jones and Stan Druckenmiller to innovative fintech platforms embracing blockchain settlement layers—the narrative has shifted. Bitcoin is no longer fringe; it's becoming part of the financial mainstream.
As markets evolve and digital assets mature, staying informed—and strategically positioned—will be key for anyone looking to navigate the future of money.