Bitcoin (BTC-USD) hit a new all-time high above $111,000 (£82,605) on Thursday, marking another milestone in its 2025 bull run.

The world’s largest cryptocurrency by market cap continued to surge even as US stock markets declined on Wednesday, with the tech-heavy Nasdaq (^IXIC) posting losses.

Analysts are pointing to growing institutional appetite for bitcoin as a major factor in its price appreciation. “Institutional conviction is clear, and bitcoin investment products saw $557m in inflows last week alone, contributing to a record-breaking $7.5bn year-to-date,” said Nexo Dispatch analyst Iliya Kalchev.

“On-chain data shows capital pouring in fast enough to push Bitcoin’s Realized Cap above $900bn for the first time — evidence that this rally isn’t just speculative, it’s backed by real demand.”

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Regulatory progress in the US is also supporting sentiment. The GENIUS Act — a bill aimed at establishing a regulatory framework for stablecoins — cleared a key procedural vote in the US Senate this week.

“The GENIUS Act is a major step forward in removing regulatory uncertainty, but regulation, including this act, shouldn’t place too much of a compliance burden on cryptocurrency startups, and should ensure the right of ordinary citizens to privacy,” Near Foundation head of research Lane Rettig said.

Even traditional finance players appear to be softening their stance. JPMorgan (JPM) CEO Jamie Dimon, a longtime crypto skeptic, recently confirmed the bank will now allow clients to buy bitcoin.

Supply dynamics are also playing a key role in the bitcoin price surge. The amount of bitcoin held on centralised cryptocurrency exchanges has dropped to historic lows, indicating a shift toward self-custody and reducing readily available supply. According to CryptoQuant, exchange reserves are at an all-time low.

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CoinGlass data shows that 7,206 BTC left exchanges in the last 24 hours, with over 121,000 bitcoin withdrawn in the past month.

With shrinking supply and rising demand, analysts believe bitcoin’s rally could be far from over. Standard Chartered (STAN.L) recently reiterated its bullish outlook, forecasting a price of $200,000.

Financial educator and author Robert Kiyosaki predicted bitcoin could hit $250,000 by year-end — and potentially reach $500,000 or even $1m longer term.

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