Key Takeaways
- Bitcoin reached a new record high amid Japan’s debt concerns and an increase in gold prices.
- Corporate buying by Strategy and Metaplanet has been linked to Bitcoin’s recent price gains.
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Bitcoin touched $109,845 on Binance Wednesday morning, surpassing its January high of $109,588 and being on track to hit $110,000 amid mounting concerns over global fiscal stability that have also fueled a rally in gold.
Gold prices rose 0.6% to $3,312 an ounce at press time, after briefly touching their highest level since May 12, according to TradingView.
The rally in these assets comes as Japan’s long-term bond yields surged to record highs—3.14% on the 30-year and 3.6% on the 40-year JGBs, following weak auctions that reflected growing investor unease over the country’s massive debt load.
“Japan’s ballooning debt situation has long been a simmering concern, but it is now reaching a boiling point,” said QCP Capital in a statement.
In the US, fiscal uncertainty is growing as the national debt nears $36 trillion and major policy deadlines approach in 2025. Without tax and spending reforms, the debt could exceed 120% of GDP within the next decade.
Rising interest rates have already increased borrowing costs, while political gridlock and expiring tax provisions threaten a fiscal cliff. Analysts warn that without a credible plan to control spending, the US may face higher borrowing costs, slower growth, and greater economic instability.
This climate of uncertainty is boosting demand for safe-haven assets like gold, and Bitcoin appears to be following gold’s lead.
For months, market analysts have been watching the relationship between Bitcoin and gold, noting how the flagship crypto has increasingly mirrored gold’s behavior rather than tracking traditional risk assets like US equities.
Market analyst MacroScope said in a recent post that the anticipated “gold-to-Bitcoin handoff” is now playing out, with Bitcoin decisively outperforming gold since March.
He noted that this pattern, where gold rallies first and Bitcoin follows, has held true at several key market inflection points in past cycles, often marking the beginning of a phase where Bitcoin outperforms both gold and risk assets.
March. Since then:
BTC +22%
Gold +10%That’s the gold “handoff” to BTC we were watching for a few months ago. The longer-term scenario below looks increasingly likely. https://t.co/BSukszNxMp
— MacroScope (@MacroScope17) May 20, 2025
Corporate and institutional demand add momentum to Bitcoin rally
Other factors, including increasing corporate accumulation and steady institutional demand, give additional boosts to Bitcoin’s price actions.
Apart from well-known adopters like MicroStrategy, MARA Holdings, and Japan’s Metaplanet, many new entrants have begun accumulating Bitcoin or announced intentions to hold it as a strategic reserve asset.
At the sovereign level, the global race to build national Bitcoin reserves is also expected to accelerate, potentially driving further long-term supply constraints.
On the institutional front, appetite for Bitcoin remains robust. US-listed spot Bitcoin ETFs attracted nearly $1 billion in net inflows over just two trading sessions this week, according to Farside Investors.
“Bitcoin is no longer a niche asset. Institutional investors, spot ETFs, payment providers – they are all currently creating the infrastructure that will permanently anchor Bitcoin in the financial system,” said Bitpanda CEO Eric Demuth in a Wednesday statement.
“This all-time high is not a peak, but a foundation. Behind it is the clear signature of the United States, which now views crypto and digital assets as a core strategic theme of its financial and economic policy,” he added.
According to Arthur Hayes, co-founder of BitMEX and manager of the Maelstrom fund, Bitcoin needs to surpass $110,000 and potentially rally up to $150,000–$200,000 with increased trading volume to initiate an alt season.
Hayes expects altcoins to outperform Bitcoin during this phase, similar to past cycles, but with a more selective rise focusing on assets with compelling narratives. He also projects Bitcoin’s value could reach $250,000 by year-end and $1 million by 2028.
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