Bitcoin hits new all-time high - what comes next?

There's a popular mantra in cryptocurrency circles whenever bitcoin and other cryptocurrencies enter an accelerated bull run that "this time is different".

It's half rallying cry, half prayer, but meant to capture the sentiment that crypto has finally matured as an asset class and is ready to enter the mainstream. 

Yet bitcoin deservedly retains a reputation for wild price swings and dramatic boom and bust cycles, which naturally scares off many potential investors. 

But as it soars past its all-time high amidst ever-increasing institutional interest, this time may really be different. 

Bitcoin sets new all-time high

"What we are seeing now is less speculative churn and more long-term positioning," says Monochrome CEO Jeff Yew.

The recent all-time high reinforces bitcoin's "trajectory from a speculative asset to an increasingly integrated part of global financial infrastructure," according to Yew.

The Monochrome Bitcoin ETF allows existing bitcoin holders to transfer their existing BTC holdings into the ETF structure, and Yew says they've seen a rise in these in-kind deposits.

"This behaviour underscores a key trend: sophisticated holders are looking to maintain Bitcoin exposure while moving into vehicles with stronger investor protections and regulatory clarity," he said. 

Global X's Justin Lin says bitcoin is on its way to becoming a more mature asset.  

"While bitcoin’s ability to be a “safe haven” is still a very nascent narrative, it’s starting to resonate with investors looking for neutral, resilient assets in a world that’s becoming more economically fragmented," he says. 

"Like gold, bitcoin isn’t tied to any one country, has a fixed supply, and sits outside the control of central banks. Those qualities make it increasingly attractive in this broader shift toward monetary realignment."

Its role as a hedge has also strengthened off the back of recent market turmoil, says VanEck's Jamie Hannah, whose bitcoin ETF (ASX: VBTC) trades on the Australian Securities Exchange. 

"Bitcoin’s volatility versus equities has been testing multi-year lows, which has encouraged more investors to use it as a potential hedge amid rising macro uncertainty," says Hannah. 

No more boom and bust?

"As bitcoin adoption grows and the asset becomes more institutionalised, its boom-and-bust cycles are likely to fade," says Lin. "We’ve already seen a notable decline in volatility over the past decade thanks to deeper market participation."

He points to the success of bitcoin ETFs, like Global X 21Shares Bitcoin ETF, in Australia, the US and elsewhere as a contributor to its maturation. 

"The launch of bitcoin ETFs in recent years has created a major platform for broader access and will likely speed up this stabilisation process," he said. 

Hannah disagrees somewhat.

"We have witnessed bitcoin’s price swings become less extreme as it has evolved into an institutional asset," he said. 

"However, the ‘boom and bust’ cycle appears to be an inherent characteristic of bitcoin rather than a growing pain."

But this could be a feature, not a bug, for investors looking for potentially outsized returns. 

"If we take a step back and look beyond short-term market gyrations, we can see that bitcoin’s performance trends upwards, and it has been the best performing asset class in nine out of the past 11 years," says Hannah.

Where bitcoin goes next

The current environment paves the way for further price appreciation, says Lin.

"We believe bitcoin could plausibly reach around US$200,000 by year-end – provided the risk-on environment holds, policy clarity improves, and political engagement from the Trump administration continues to build momentum."

VanEck's Jamie Hannah agrees the narrative is building for a bitcoin bull run. 

"Bitcoin has historically benefited from fluctuations in the global economy, geopolitical conflicts and investor diversification away from US assets, and none of these trends look like they are going to run out of steam any time soon," he said.

For Yew, the next step in bitcoin's journey is the merging of traditional finance with crypto-native functionality.

"We're witnessing a structural alignment where traditional governance frameworks are meeting crypto-native wealth. It’s not just technological integration - it’s financial interoperability," he said. 

"This, we believe, will be a major driver of future asset flows and one of the defining conditions for wealth creation in the digital age."