Bitcoin is negotiated at peaks of all time, exceeding £ 93,000 for the first time.
The biggest in the world cryptocurrency has doubled in the past 12 months – supported by Donald Trump’s return to the White House.
However, its 10% increase in last week fell to a specific factor: The closure of the American government.
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The American government stops
Experts told Sky News that the drama that takes place in Washington has been undergoing confidence in the dollar – and pushes investors to alternatives.
The senior partner of Bitwise Max Shannon said that stubbornly high inflation, which erodes the power of expenditure, is another factor.
Some countries also increase their monetary supply – reducing the value of the cash flow in circulation – with the borrowing of the government increasing.
This led to what is called a “discharge trade”, where investors worsened their money in so -called “hard” assets such as bitcoin and gold instead.
Bitcoin has a fixed offer, which means that 21 million will ever exist. Almost 95% of them are already in circulation, with a small number of parts entering the market every day.
Amateurs argue that this creates a form of rarity that increases prices, because BTC demand is considerably higher than supply.
Bitcoin has doubled in the past year. Pic: Coinmarketcap
The latest figures from the Authority Conduct Authority suggest that around seven million people in the United Kingdom have invested in cryptocurrencies. A single room can be divided into 100 million pieces, which means that many have a small piece of bitcoin in their wallets.
But a large part of the current enthusiasm for Bitcoin does not come from everyday investors – instead, it is the institutions that lead the charge.
Companies and individuals with deep pockets buy negotiated stocks (ETF) to Wall Street that follow the value of Bitcoin – allowing them to gain an indirect exposure to the price increases of the BTC without having it directly. A $ 3.5 billion (2.6 billion pounds sterling) flowed into these products last week last week.
Samson Mow is the CEO of Jan3, a company that promotes the adoption of Bitcoin. He played a role in El Salvador becoming the first country in the world Adopt this cryptocurrency as a tender.
Although this experience has not succeeded, the Central America Nation continues to invest in the BTC – with estimated benefits of more than 350 million pounds sterling accordingly.
When asked why Bitcoin has reached heights of all time, Mow told Sky News: “Bitcoin was a balloon underwater for months – this movement was inevitable. The raw demand simply caught up the incredibly limited supply. ”
He pointed out how 6.7% of Bitcoin’s offer is now linked in ETF – with Strategy, a company that aims to accumulate as much BTC as possible, holding an additional 3%. This means that there is less to get around the whole, in what Mow describes as “the start of a massive supply shock”.
Samson Mow is a vocal Bitcoin supporter. Pic: Reuters
The entrepreneur estimates that one Bitcoin would one day be worth $ 500,000 (£ 371,000), which means that the total market capitalization of the cryptocurrency would increase to $ 10 billion (£ 7.4 TRN). It’s more than double what Nvidia is currently worth the most precious company in the worldAnd would make BTC the second largest asset after gold.
Mow has increased the shoulders of any suggestion that the dramatic price increases are not durable – and insists that the only thing that is “certainly not durable” is the value of BTC which remains as weak as it is.
“There are only 21 million BTCs. Most companies, billionaires and even millionaires still have no exposure to nation states.
Of course, not everyone shares their enthusiasm. Critics argue that Bitcoin lacks intrinsic value, some saying that it is “worse than a Ponzi diagram”.
David Gerard, a deeply skeptical journalist with regard to the cryptography industry, told Sky News that Bitcoin suffers from thin trading volumes – which has caused “tirelessly volatile prices” and an “easily manipulated market”.
“Bitcoin trading is massively in unregulated offshore scholarships, so Bitcoin is not a well-functional market in the sense of action,” he said. “If investors treat Bitcoin as a well -regulated market, they will be burned. FNBs are regulated instruments, the way the price of bitcoin is fixed is not. ”
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The Bitcoin battle of 5 billion pounds sterling
Gerard has deteriorated the BTC for years and wrote a book condemning the sector in July 2017. But in the eight years that were published, the Bitcoin price increased by more than 5,200%. Has it changed his opinions?
“Everything that does not go structurally with Bitcoin is always bad with Bitcoin,” he said. “Anyone who sees the big number and who thinks that” time to enter “is the Sucker whose big boys earn their money.
“You can certainly earn money in Bitcoin! But statistically, you are much more likely to be the suction cup.”
Some banks, including Morgan Stanley, now encourage their customers to allocate 2% to 4% of their crypto portfolios – but do so when prices are so high are risky.
Although it is possible that Bitcoin can continue to rise, it is an asset also known to punish declines that have seen investors, including people here in the United Kingdom, lose a lot of money.
This tends to happen every four years. BTC reached a record price of $ 20,000 in December 2017, but plunged more than 80% a year later – falling below $ 4,000.
Another $ 69,000 summit then followed in November 2021 – but 12 months later, a spectacular accident brought it back to $ 17,000, a drop of 75%.
Four years later in October 2025, here we are again: the BTC was never higher. History is not always repeated – but if past performance is a guide, 2026 could be difficult.