NEW DELHI: Bitcoin the world’s largest cryptocurrency, shattered its previous records on Sunday surging to an unprecedented all-time high above the $125,000 mark. The powerful rally is being driven by a confluence of factors most notably a growing “debasement trade” as investors seek refuge from the perceived erosion of value in traditional fiat currencies.
The ascent is part of a broader risk-on rally in global markets, but analysts attribute Bitcoin’s specific momentum to mounting concerns over sovereign debt and inflationary pressures in major economies, particularly the United States. This has spurred a flight to assets with a finite supply. With its capped supply of 21 million coins Bitcoin is increasingly being treated by a segment of investors as a hedge against currency devaluation reinforcing its narrative as ‘digital gold’.
The foundation for this latest peak was laid last week when Bitcoin demonstrated its growing ‘safe haven’ characteristics. As fears of a U.S. government shutdown rattled conventional markets the digital asset showed remarkable resilience decoupling from the uncertainty and gaining strength, thereby bolstering its credibility as a viable alternative store of value.
Sunday’s historic rally has propelled Bitcoin’s market capitalization to over $2.5 trillion cementing its position among the world’s most valuable assets. The digital currency has seen a phenomenal rise of more than 100% since the beginning of the year making it one of the top-performing assets of 2025.
Market experts suggest that this rally signifies a maturing of the asset class indicating that Bitcoin is now increasingly responsive to macroeconomic triggers rather than being driven solely by speculative fervour. However they continue to advise caution regarding its inherent volatility. The current trend nevertheless underscores a significant shift in investor strategy with Bitcoin being increasingly integrated into portfolios as a tool for diversification and a hedge against the risks of the traditional financial system.
