Crypto
Governments and banks once mocked Bitcoin. Now they want in on it
Bitcoin has proven to be one of the best-performing assets in modern history.
The value of the cryptocurrency has increased some 1,000 times over the past decade, far outpacing US stocks and real estate.
Buoyed by United States President-elect Donald Trump’s crypto-friendly stance, Bitcoin’s record rally hit a new high of $107,000 on Monday after the Republican reiterated his intention to create a Bitcoin strategic reserve.
Bitcoin, the first decentralised digital currency, was invented by the pseudonymous figure Satoshi Nakamoto in the wake of the 2007-2008 global financial crisis.
Nakamoto introduced the blockchain system – a digital ledger that stores transactions in a network of computers – to enable anyone to make financial transactions without the involvement of banks, financial firms or governments.
Once widely derided as a speculative asset with no intrinsic value, Bitcoin is being taken increasingly seriously by governments, financial institutions and investors alike.
Boaz Sobrado, a London-based fintech analyst, said Bitcoin has transformed from being a niche asset favoured by political dissidents and criminals carrying out Illicit transactions “to something that central banks have to keep in mind and consider”.
“The IMF has put very firm anti-crypto political guidelines into place when negotiating with countries that might require its own assistance. It’s gone from being an academic question to a practical, real one and one that central banks are taking very seriously now,” Sobrado told Al Jazeera.
In January, the US Securities and Exchange Commission (SEC) approved Bitcoin ETFs (exchange-traded funds), allowing investors to have exposure to the asset on the stock exchange for the first time.
In an October report, the US Department of the Treasury referred to Bitcoin as “digital gold”, noting its use as a store of value.
A number of countries have made big bets on the cryptocurrency.
El Salvador has accumulated some $600m worth of Bitcoin reserves and is one of just a handful of countries, along with the Central African Republic, that accepts the asset as legal tender.
Other countries, including the US and the United Kingdom, have acquired large holdings of Bitcoin through the seizure of assets implicated in criminal activity.
The US has seized at least 215,000 Bitcoins, valued at almost $21bn at current prices, since 2020, according to an analysis by crypto firm 21.co.
With Trump returning to the White House, Bitcoin supporters are hopeful that cryptocurrencies will gain unprecedented legitimacy after years of government-led crackdowns on the sector.
Despite once labelling Bitcoin “a scam”, Trump has emerged as arguably the world’s most powerful advocate for the asset.
After pledging to make the US “crypto capital of the planet”, he has picked several high-profile crypto enthusiasts to join his incoming administration, including former PayPal Chief Operating Officer David Sacks as crypto tsar and Paul Atkins as SEC chair.
Trump’s pro-crypto stance has found allies in the US Congress, such as Senator Cynthia Lummis, a Republican from Wyoming, who earlier this year introduced the BITCOIN Act of 2024, which would include Bitcoin among reserve assets such as gold and oil as a long-term store of value.
Under Lummis’s plans, the government would buy roughly 200,000 Bitcoins every year for five years, and then hold the assets for 20 years as a hedge against inflation.
“If we did that with five percent of all the Bitcoin that will ever exist – which is roughly a million Bitcoin – we could cut our debt in half in 20 years,” Lummis said in a television interview with Fox Business.
On Wall Street, derision and mockery have also given way to more positive appraisals.
BlackRock CEO Larry Fink, who once described Bitcoin as an “index of money laundering”, in January said the commodity was “no different than what gold represented for thousands of years” and an “asset class that protects you”.
‘Currency of resistance’
The key attribute of Bitcoin that makes it revolutionary is that it separates money from the state, according to Max Keiser, senior Bitcoin adviser to El Salvador President Nayib Bukele.
“This is the first time in history that this has ever happened – money exists that has no central authority controlling it. This is what makes it unique, very powerful,” Keiser told Al Jazeera.
“There’s now this growing feeling that the 21st century will be the century of Bitcoin.”
Keiser spotted Bitcoin’s potential early on and advised people to buy it when its value was only $1 in 2011. That year, he and his wife, television presenter Stacy Herbert, called Bitcoin “the currency of resistance”, and predicted it would top $100,000.
One of the reasons Bitcoin has gained strength in value is the poor performance of economies such as Argentina, where inflation last year skyrocketed more than 200 percent, according to Gerald Celente, founder and director of the New York-based Trends Research Institute.
“People were seeing their currencies being devalued… People were saying: ‘I’m losing all my money, what am I going to do?’ They can’t afford to buy gold, so they started buying whatever they could in cryptocurrencies like Bitcoin, so that kept it strong,” Celente told Al Jazeera.
Since Trump’s election, Bitcoin’s price has risen by more than 50 percent and with an incoming pro-crypto administration, Celente predicts an even greater rally.
“[The value] could go through the roof, but we don’t see [Bitcoin] going down much at all,” he said.
Crypto supporters argue that Bitcoin’s winning advantage is that its global supply is capped at 21 million.
Unlike central banks that can print money indefinitely, Bitcoin’s supply stays constant no matter the demand, which has helped boost its value against the dollar.
Armando Pantoja, futurist and tech investor, believes that Bitcoin will appreciate in value “forever”, likening the purchase of the asset to buying real estate in Manhattan.
“Bitcoin has value not because of the currency, but because of the technology that governs it, blockchain technology,” Pantoja told Al Jazeera.
“In Bitcoin’s blockchain, there’s a certain supply of Bitcoin that comes out every 10 minutes, and every four years they cut it in half. Over time there is less and less Bitcoin being generated.
“Once it reaches the limit, no more can be created… That’s why it’s going to keep going up, every four years when they cut the supply, it has to respond positively. It has to keep going up to supply the demand.”
Keiser predicts Bitcoin will reach $1m in value in the coming years, with a market cap at least equal to gold’s market cap of $20 trillion.
“That would be $1m a coin. I think that would be a conservative estimate for the price for the next three to four years,” he said.
Bitcoin’s stellar rise, however, has not convinced everyone.
Despite its recent rally, the commodity continues to be extremely volatile.
After hitting $107,000 at the start of the week, the asset had by Friday plunged below $97,000.
Many financial analysts continue to view Bitcoin as a bubble with little to support its stunning rise.
“The more resources Americans misallocate to #Bitcoin and #crypto-related businesses, the fewer resources will be available to devote to making stuff we actually need,” Peter Schiff, chief economist at Euro Pacific Capital, said in a post on X last month.
“The end result will be larger trade deficits, a weaker dollar, higher inflation, and a lower standard of living.”
Even as Trump’s positive stance towards Bitcoin has thrilled crypto enthusiasts, some pro-crypto governments have reined in their support of the sector.
El Salvador announced this week that it would privatize or close its cryptocurrency wallet “Chivo” as part of the terms of a $1.4bn loan deal with the International Monetary Fund (IMF).
Bukele’s government also agreed to make acceptance of Bitcoin by businesses voluntary, within steps to assuage the IMF’s concerns about Bitcoin-related risks.
Central bank digital currencies
Some crypto supporters see governments and central banks taking a leading role in the global march towards digitised money with the development of their own currencies.
Celente of the Trends Research Institute said the US, for example, could create its own digital currency as a way to pay off its federal debt.
“There’s no way the US can pay off their $36 trillion worth of government debt. They may come up with a new cryptocurrency as part of CBDCs (Central Bank Digital Currency),” Celente said.
“You’re seeing more and more of the central banks talking about CBDCs, they’re definitely going to go into that direction,” Celente added.
“They’re going to use this as an excuse to come up with a coin because they cannot pay off the debt that they have now. They’re going to say, ‘This [digital currency] is worth a lot more than the dollar, yuan, the euro,’ and use that to pay off their debt.”
Some observers have warned that the introduction of CBDCs would open a Pandora’s box of problems related to government control and surveillance of people’s finances.
Trump’s pick for commerce secretary, Howard Lutnick, is the CEO of Cantor Fitzgerald, which manages the stockpile of US Treasuries that back Tether, the largest stablecoin by market cap.
Stablecoins are cryptocurrencies that are pegged to a traditional commodity or currency to maintain a stable price. They have reached record volumes of more than $200bn in total market cap.
Sobrado said there could be an opening for Tether to become the national de facto privatised CBDC for the US, and for smaller economies such as the UAE, Hong Kong, Singapore and Switzerland to issue their own CBDCs.
“The pro-crypto voices and Fed-critical voices have never been louder in the White House,” Sobrado said.
Celente said he had no doubt that the future of money is digital.
“There’s no question at all,” he affirmed.
Key Takeaways:
- Arthur Hayes ties bitcoin’s outlook to global liquidity, with upside dependent on policy-driven liquidity.
- Geopolitics create a bearish setup as war risk, deleveraging, and AI-driven stress weigh on markets.
- Liquidity injections could lift bitcoin once credit stress forces intervention.
Bitcoin Outlook Hinges on Liquidity
Arthur Hayes’ latest market note, titled “No Trade Zone,” signals that bitcoin’s outlook is increasingly tied to global liquidity conditions rather than traditional macro indicators. On April 15, the Bitmex co-founder and Maelstrom CIO outlined a cautious stance, citing geopolitical tensions and artificial intelligence-driven economic risks as key constraints. The essay presents BTC as vulnerable in the short term but positioned to respond to future monetary expansion.
Hayes centered his outlook on monetary conditions rather than conventional valuation models. He asked, “Do you believe the quantity or the price of money is more important when valuing bitcoin?” He then answered with a direct thesis:
“I believe the quantity of money determines the price of bitcoin, not its price.”
That view underpins his broader market framework, which expects bitcoin to struggle during periods of forced deleveraging, then strengthen when policymakers expand credit. He tied that dynamic to several geopolitical outcomes involving the Strait of Hormuz, as well as to a domestic economic slowdown driven by job losses among white-collar workers. In Hayes’ view, those pressures could hit credit quality, weigh on banks, and delay any durable crypto rally until authorities supply fresh liquidity to stabilize the system.
War Risk and Credit Stress Threaten Rally
That caution appears clearly in one of the essay’s most specific forecasts. “ Bitcoin might bounce a bit after the situation reverts to the pre-war status quo,” Hayes wrote. “However, the AI agentic deflation bomb still ticks below the surface. Until the Fed provides the liquidity needed to plug the black hole in banks’ balance sheets caused by consumer credit defaults, bitcoin will not meaningfully rise.” He further shared:
“That’s not to say it couldn’t spike to $80,000 to $90,000, but for me putting new units of fiat at risk requires an all-clear from the Fed.”
The statement shows that he still sees upside potential, but not before broader financial stress is addressed.
Hayes also warned that market stress could produce another sharp bitcoin selloff before any recovery takes hold. “As investors de-risk their portfolios because of higher volatility and lower prices, investors sell bitcoin to meet margin calls,” he described, adding: “Only when things get bad enough will bitcoin rise, as expectations of a bailout become the consensus.” In the most extreme scenario, even a liquidity-fueled rally may not last. As Hayes put it: “The rally in bitcoin, inspired by money printing, might be short-lived because the destruction of the Iranian state materially raises the prospect of WW3.” Taken together, the essay presents a conditional forecast: near-term volatility remains high, while any lasting upside still depends on crisis-era money creation.
Key Takeaways:
- Chainalysis flags Grinex swaps as inconsistent with typical law enforcement seizures.
- Tron-based conversions show illicit actors avoiding stablecoin issuer intervention.
- Grinex activity does not clearly align with patterns of a conventional external hack.
Grinex Shutdown Raises Questions About Crypto Laundering Tactics
Sanctions pressure continues to test the resilience of crypto networks tied to restricted financial activity. Blockchain intelligence firm Chainalysis on April 17 examined Grinex after the sanctioned exchange suspended operations. The review described the shutdown as a new stress point for infrastructure tied to sanctions evasion.
Grinex claimed a cyberattack cost about 1 billion rubles, or $13.7 million, and published the source and destination addresses involved. Chainalysis then assessed the transfers using on-chain data rather than relying on the exchange’s narrative. The analysis found that the stolen assets were mainly a fiat-backed stablecoin before being moved through a Tron-based decentralized exchange into TRX.
“In the case of the alleged Grinex hack, the stablecoin funds were quickly swapped for a non-freezable token, thereby avoiding the risk of having the stablecoins frozen by the issuer,” the blockchain analytics firm stated, adding:
“This frantic swapping from stablecoins to more decentralized tokens is a hallmark tactic of cybercriminals and illicit actors attempting to launder funds before a centralized freeze can be executed.”
Chainalysis argued that this behavior does not fit a typical Western law enforcement seizure because authorities can request freezes from centralized stablecoin issuers. The firm instead said the rapid conversion raises questions about whether the activity aligns with a conventional external hack.
Shadow Crypto Economy Shows Deep Interconnected Structure
Those conclusions rest on more than the attack claim alone. Chainalysis noted that the decentralized exchange used in the swap had previously served Garantex, the sanctioned predecessor to Grinex, as a liquidity source for hot wallets. That detail is notable because Chainalysis has already described Grinex as the direct successor to Garantex after international enforcement disrupted the earlier platform. The company also tied Grinex to A7A5, a ruble-backed token issued by sanctioned Kyrgyzstani company Old Vector.
According to the analysis, A7A5 was built for a narrow Russia-linked payments ecosystem aligned with cross-border settlement needs under sanctions pressure. Chainalysis added that the exfiltrated funds were still sitting in a single address at publication time, leaving a live trail for future forensic review.
The broader takeaway was less about one theft than about the financial system surrounding it. Chainalysis observed that the episode is the latest disruption inside a “shadow crypto economy.” That phrase captured the firm’s larger conclusion that Grinex, Garantex, A7A5, and related services formed an interlinked network designed to keep value moving despite sanctions. Chainalysis further disclosed that it labeled the relevant addresses in its products to help customers identify exposure as the funds move downstream. Even without final attribution, the firm made clear that Grinex’s suspension damages a key channel within that sanctioned ecosystem.
At 8:45 a.m. Eastern Time today, the market price for a single Bitcoin (BTC) is $75,746.90. That’s a $960.86 jump from where it was trading yesterday morning and about $9,200 lower than it was one year ago.
What is Bitcoin?
Bitcoin is widely recognized as the pioneering cryptocurrency and continues to hold the top spot in terms of name recognition and market size. Its market capitalization is roughly $1.33 trillion, putting it far ahead of second-place Ethereum with about $233 billion in market cap.
At a basic level, Bitcoin functions as a decentralized digital currency. Instead of relying on a central authority like a bank or government, it runs on a peer-to-peer network of computers. This design lets people transfer value straight to others without using a traditional financial intermediary.
Many investors turn to Bitcoin as a potential hedge against inflation in the U.S. dollar or as a way to branch out beyond conventional investments. Over the past decade, it has posted stunning gains, often outperforming major stock indexes, which has played a big role in its popularity.
At the same time, Bitcoin shares a key trait with other cryptocurrencies—it can be extremely volatile, with frequent and sometimes dramatic price changes.
Bitcoin price history
Since it was introduced in 2009, Bitcoin has been highly volatile and often headline-grabbing. One early milestone in its history involves developer Laszlo Hanyecz, who famously spent 10,000 Bitcoins on pizza. Today, those coins would be valued at more than 668 million dollars.
Over the last decade or so, Bitcoin’s price has climbed more than 15,000%. This tremendous growth comes with a trade-off, as cryptocurrencies are known for their unpredictability. Bitcoin has undergone severe pullbacks—sometimes dropping tens of thousands of dollars within months—as well as dramatic recoveries. At the close of 2025, it was trading roughly 30% below the all-time high it hit that very October.
What affects Bitcoin’s price?
Several different dynamics can move Bitcoin’s price up or down, including:
- Investor speculation: Like many speculative assets, Bitcoin’s short-term price is heavily driven by trader psychology and buzz. In the near term, prices usually reflect investor beliefs and trading activity more than anything else.
- Adoption by major companies: When large corporations embrace Bitcoin or broader crypto technology, it can help support further growth. For example, Bitcoin’s price rose after companies such as Tesla and Ferrari announced plans to accept Bitcoin as a payment option.
- Economy: Bitcoin doesn’t track inflation figures or central bank decisions in the same way many traditional investments do. Still, it often benefits when the U.S. economy is strong, because people who feel financially secure may be more willing to allocate money to alternative assets that are a bit riskier—like crypto.
- Regulatory developments: As a relatively young asset class, cryptocurrency is still in the process of being fully regulated. New rules or enforcement actions can either instill confidence or create fear. Both cases can significantly affect Bitcoin’s price.
How to buy and invest in Bitcoin
If you’ve decided to invest in Bitcoin, there are multiple ways to do it. Here are some of the main options.
Buy Bitcoin on a cryptocurrency exchange
The most straightforward route is to buy Bitcoin directly. You set up an account with a crypto exchange, connect it to your bank, and then use your deposited cash to buy Bitcoin.
Invest in Bitcoin ETFs
For those who prefer a more traditional investment vehicle, Bitcoin exchange-traded funds are an alternative. A Bitcoin ETF holds Bitcoin on behalf of its shareholders, and its shares trade on standard stock exchanges. This option lets you skip the process of managing your own crypto wallet and can reduce the risk of losing access to your funds because of a password mistake or wallet issue.
Buy crypto stocks
Investors who don’t want to buy Bitcoin directly can also consider stocks of companies in the crypto space. These might include tech companies that support blockchain technology, public crypto exchanges, even payment processors. Because these companies may earn revenue from Bitcoin-related activity, their share prices can offer indirect exposure to Bitcoin’s performance.
Open a Bitcoin IRA
For retirement-focused investing, a Bitcoin IRA is another great option. Like a standard IRA, it’s a tax-advantaged account with similar contribution limits and tax rules, but it lets you allocate some of your retirement savings to Bitcoin and other cryptocurrencies as alternative investments.
Bitcoin vs. other cryptocurrencies
Bitcoin might be the best-known name in crypto, but it is not your only choice. When weighing where to put your money, you may want to compare it with a few other major coins.
- Ethereum: Ethereum is currently the second-largest cryptocurrency by market cap. Unlike Bitcoin, which was designed mainly as a form of money, Ethereum was built as a decentralized computing platform and is widely used for running applications and smart contracts.
- Tether: Tether is a stablecoin, meaning that its value is directly tied to another asset—in this instance, the U.S. dollar. Its peg typically keeps price movements smaller than Bitcoin’s, but that also means there’s less opportunity for outsized growth.
- XRP: XRP is a digital asset created to make sending money across borders faster and cheaper, focusing specifically on international transfers with low transaction costs.
Crypto coverage from Fortune
See our newsroom’s recent coverage of what’s been happening on the cryptocurrency scene:
Is it a good time to invest in Bitcoin?
When compared with long-standing blue-chip names such as Procter & Gamble or Walmart, Bitcoin is still a newcomer. That makes predicting its long-term behavior challenging. But its recent history has been impressive. As more companies start accepting Bitcoin as a payment method, its price may get a further boost, and as the asset matures, it might eventually see somewhat smoother price movements.
However, Bitcoin should not be treated as a sure bet. It’s wise to invest only money you can afford to have tied up and to ensure your broader portfolio is diversified, so other investments can help offset Bitcoin’s volatility.
For most people, Bitcoin is better viewed as a long-term, higher-risk holding than as a quick trade. It is not ideal for investors who are uncomfortable watching large price swings. But if you plan to hold it for years and keep it as a piece of a balanced portfolio, investing in Bitcoin could make sense for a portion of your overall strategy.
Frequently asked questions
How much will Bitcoin be worth in 2030?
While the answer is obviously unknowable, crypto experts are generally optimistic about the short-term success of Bitcoin. Some models price it at more than $700,000 by 2030, with conservative estimates closer to $300,000.
What is Bitcoin’s all-time high price?
As of this writing, Bitcoin reached its highest price ever on Oct. 6, 2025, pricing at a whopping $126,198.07.
Can you buy a fraction of a Bitcoin?
Yes, you can buy a fraction of a Bitcoin. Most cryptocurrency exchanges offer fractional investing, meaning you can buy portions of crypto coins. Thanks to fractional investing, you can invest in Bitcoin with as little as a few dollars.
How do I start investing in Bitcoin as a beginner?
If you want to invest directly in Bitcoin by owning the currency, you’ll typically open an account with a cryptocurrency exchange. Once the account is created, you can transfer money to your crypto account from your bank and place an order for Bitcoin and other tokens or coins. You can also indirectly invest in Bitcoin via an ETF or a business that uses Bitcoin.
What can you buy with Bitcoin?
You can use your Bitcoin holdings in several ways, from selling for cash to trading it for other coins. In some cases, you can also pay for purchases, such as with Tesla and Microsoft.
Does Bitcoin outperform the stock market?
Bitcoin has well outperformed the stock market since its launch, but its extreme volatility makes it far less than a guarantee to be a better investment than stocks.
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