Current Market Background: BTC Hits New Highs but Faces Testing
As of the end of 2025, Bitcoin's price fluctuates around $88,700, still room below the all-time high of $126,080. This rally began in early 2024 from $40,000, with a 132% increase, marking the start of a new bull run cycle.
Unlike previous cycles, this bull market is driven by multiple forces: the US SEC approving spot Bitcoin ETFs opens the door for institutional investment, the April fourth halving event reinforces supply scarcity expectations, and political cycle uncertainties boost safe-haven demand.
However, it is important to note that the current market is experiencing growing pains as it transitions from speculation to institutionalization—high volatility persists, market liquidity concentration increases, and any negative signals could trigger rapid adjustments.
Common code of previous bull markets: halving + narrative shift