Bitcoin is reaching new heights again. It already hit above the $103,332.30 marker in December 2024, destroying its record of $73,738 in March 2024. Now, the value sits over that level as of 21 May 2025, peaking at $109,359.59. The scenario feels like déjà vu for investors in North Carolina and beyond. However, there’s a difference this time, which relates to the new price drivers.  Everyone’s happy, but also wondering what is pushing the price up again. 

The answer doesn’t only involve hype. It’s a combination of institutional demand, economic pressures, monetary policies, inflation, and some new behaviours in the crypto realm. What’s driving the Bitcoin price to an all-time high again?

A Growing Demand for Online Entertainment Using Crypto

The recent growth in online entertainment platforms that accept cryptocurrency has contributed to the increase in Bitcoin usage. Various platforms, including video gaming sites and online casinos, now allow players to use Bitcoin without having to convert the crypto back to fiat currencies. 

For players, understanding Bitcoin casino mechanics means tapping into the opportunities they present. Industry expert Wilna van Wyk perfectly explains the reasons that drive the growing demand for online entertainment using cryptocurrencies like Bitcoin, Ethereum, and Tether. Players can deposit Bitcoin, play games in real-time, access higher transaction limits with lower fees, and choose to cash out or leave the currency for another session. Other appealing factors include enhanced privacy and security, even across borders. 

The Bitcoin casinos often retain cryptocurrencies for liquidity and operational reasons, especially if the casinos accept crypto and fiat currencies. The institutions manage volatility by doing this. In that way, the casinos cater to the growing adoption of Bitcoin and other cryptocurrencies that players are using worldwide. 

A Weakening Dollar Amidst Inflation Concerns

Inflation is always a key driver for other assets to increase in value. Inflation remains a concern for US residents, especially those in the South, even if it has cooled down from recent highs. Housing, grocery bills, and utilities are still higher than expected, and there’s a growing concern among investors with some money. They wonder where they will invest their money if cash keeps losing its value.

Bitcoin has a capped supply, with only 21 million coins available in the market. Of those, only 19.7 million have been mined, and many have been lost and withheld from sales. Central banks have monetary tools in place for when inflation worsens, such as dropping the interest rate and buying bonds, both of which decrease the fiat currency’s value. Bitcoin’s scarcity makes it the ideal hedge for inflation, similar to gold. However, Bitcoin is much easier to transfer, store, trade, and split compared to gold bricks. 

The US dollar has also stumbled on tariff fatigue earlier this year, causing more concerns. The Federal Reserve recently paused interest rate hikes, while markets have already begun pricing in potential cuts for later this year. Lower interest rates will only further weaken the dollar’s purchasing power, driving investors to alternative assets. Bitcoin is one of them. 

The same is happening in countries with higher inflation and more currency instability. Bitcoin’s investors are worldwide, making the cryptocurrency benefit from global instability.

Wall Street Welcomes the ETF Approval

Spot Bitcoin ETFs were approved in January 2024, marking a new era for Wall Street and stock markets in general. Institutional and retail investors around the US could now buy Bitcoin exposure protected by well-regulated investment vehicles on the world’s biggest stock exchange. Fidelity, BlackRock, and Ark are some of the largest ETFs backed by Bitcoin. 

Billions of dollars quickly flowed in during the first months, showing a fast reaction from smart investors. Each ETF has a collection of bonds, stocks, and other securities tied to Bitcoin, while some only have a single stock backed by crypto. The introduction of crypto-based ETFs has enhanced the buying pressure and demand because they provide shareholders with tangible shares in assets that can be traded or sold at any time. 

The more Bitcoin funds acquire, the more investors gain interest in buying the shares. The structured purchases differ from past bull markets. There’s no social media hype driving the purchasing power. The green light came directly from wealth managers, large funds, and retirement accounts. Various funds are holding the shares, shortening the supply and increasing the demand. Even local financial advisors in the Triad are getting more questions about ETFs.

The Bitcoin Halving Event Decreases the Supply

A massive thing happened to Bitcoin in April 2024. The Bitcoin network uses the halving event every four years to reduce the mining reward for transaction validations. The reward for miners dropped from 6.25 to 3.125 BTC per block, meaning fewer new coins would enter the system daily. It’s called a supply squeeze in the investment world.

A supply squeeze could go either way. It could increase or decrease the demand. Reducing the supply of any asset may increase the demand and spike the value. Bitcoin halving also reduces the rate of inflation, but the value increase is not always guaranteed. The April halving last year was planned, and traders knew it was coming. The impact isn’t any less real. 

Miners feel the pressure, with some smaller operations even shutting down or selling their hardware. Other miners might hold onto their coins or reduce selling, with both behaviors tightening the supply further. Many of our local miners are small-scale operations looking to change strategies entirely.