Bitcoin increases to $ 111,000

It is currently in a blow: In a new development, the cryptocurrency Bitcoin has reached another historical milestone on Thursday night and exceeded the $ 111,000 mark. This increase not only marks a new all -time high, but also signals a fundamental change in perception and acceptance of digital currencies.

Most recently, even Jamie Dimon, powerful banker and head of the largest US bank JPmorgan Chase, made it possible for customers to be able to buy Bitcoin. He was previously known as one of the most prominent opponents of BTC.

“Bitcoin has long been no longer a nicheasset. Institutional investors, Spot ETFs, payment providers- they all create the infrastructure, the Bitcoin permanently anchored in the financial system. This all-time high is not a peak, but the clear handwriting of the United States is now the crypto and digital assets as a strategic core of its financial and economic policy. Short-term speculation is gradually instructed.

The driving forces behind the Bitcoin record

The current high flight of the Bitcoin can be attributed to several key factors:

1. Institutional investments

In contrast to previous rally, the current increase is mainly borne by institutional capital. Companies such as Strategy, Metaplanet and Twenty One Capital have increased their Bitcoin reserves considerably. Particularly noteworthy is Michael Saylors Strategy, who recently announced the purchase of a further 7,390 BTC and thus increased its total stock to 576,230 BTC.

2. ETF inflows

The Bitcoin ETFs approved in the United States have continuous inflows. In May alone, net investments of over $ 2.8 billion were registered, which increased the total volume of the ETF stocks to more than $ 122 billion.

3. Macroeconomic factors

Several macroeconomic developments favor the Bitcoin increase:

• The geopolitical relaxation through ceasefire talks between Russia and Ukraine
• Progress in US stable legislation
• The temporary trade agreement between the USA and China, which lowered import duties to 10%
• A stable interest rate policy of the US Federal Reserve with sentences of 4.25%-4.5%

4. Bitcoin-Halving

The Bitcoin-Halving, which took place in April 2024, halved the offer of new bitcoins, which leads to a shortage and often has a price-stringing effect. In 2025, the effects could now be shown.

Optimistic forecasts for Bitcoin

The experts remain extremely positive in their forecasts:

• Presto Research confirms his annual target price of $ 210,000 for Bitcoin
• Standard Chartered states at its target of $ 200,000 for 2025
• Changpeng Zhao, the Binance founder, goes even further and sees a possible increase to $ 500,000 to $ 1 million in this market cycle
• Ki Young Ju, CEO von Cryptoquant, has revised his previously bearish assessment and recognizes a fundamental change in the market dynamics

The beginning of a new altcoin season?

With the achievement of new highs at Bitcoin, attention is increasingly focused on a possible “Altcoin season”. Altcoins are alternative cryptocurrencies alongside Bitcoin, such as Ethereum, Solana, Cardano and many more.

Analysts identify two main conditions for the beginning of an altcoin rally:

1. Bitcoin dominance reaches 70%: Bitcoin's market dominance is currently around 61%. Paradoxically, an increase to 70% could give the starting signal for old coins, since historically, after reaching this threshold, capital is often switched into old coins.
2. Increased market liquidity: Another quantitative loosening by central banks would bring additional liquidity into the system, which could also flow into old coins.

There is currently a mixed picture of old coins:

• Ethereum, the second largest cryptocurrency, shows a cautious performance compared to Bitcoin
• Newer tokens like Solana and Sui exceed Ethereum with stronger growth
• Investors currently prefer platforms with better scalability and high developer activity

Mena Theodorou, co-founder of the Australian Stock Exchange, dampens the expectations of an immediate, wide old coin rally: “While Bitcoin is in the pricing phase, it absorbs a large part of market liquidity. We will probably see strength in selected old coins and sectors than a broad rally.”

outlook

The current Bitcoin upswing is fundamentally different from previous cycles by the strong institutional commitment and the more mature market infrastructure. While regulatory uncertainties remain as potential risk factors, the current market dynamics indicate continued positive development.

For investors and observers, the question remains whether and when the old coins will benefit from the Bitcoin strength. As an expert puts it: “It is the Bitcoin show until the Altcoin season begins.”