- Bitcoin hits new ATH above $118K, defying earlier warnings from financial critics.
- Institutional funds and national banks are now adding Bitcoin to their active holdings.
- Critics like Buffett and Zeihan made calls that now stand far from what really happened.
Bitcoin reached an all-time high of $118,856 this week, defying years of skepticism from financial critics. The surge reflects growing institutional demand, renewed central bank interest, and evolving global monetary trends. Critics once dismissed the asset as a bubble and environmental threat, but the price movement tells another story.
Buffett, Zeihan, and the Shifting Narrative
Warren Buffett, chairman of Berkshire Hathaway, called Bitcoin “rat poison” in 2014 when it was trading near $560. Alongside his late partner Charlie Munger, Buffett discouraged any investment in digital currency, describing it as having no intrinsic value. Today, Bitcoin’s price has climbed more than 200 times from that point.
Back in January 2023, geopolitical strategist Peter Zeihan predicted on Joe Rogan’s podcast that Bitcoin would “go to zero, actually, negative.” At the time, Bitcoin traded around $16,000. His claim was based on energy use concerns. However, that exact period marked what many now call the “Zeihan bottom.” Following his comments, the cryptocurrency began a sharp upward trajectory, rising more than 600% since.
European Central Bank officials Ulrich Bindseil and Jürgen Schaaf also took a skeptical stance. In November 2022, they published a blog post titled Bitcoin’s Last Stand, when the coin was priced around $20,000. They labeled it speculative and environmentally damaging. Instead of fading, Bitcoin has since escalated, gaining market trust and expanding beyond its initial circles.
Institutional Flows and Policy Shifts
A main contributor to Bitcoin’s rise was the institutional capital entering the market through exchange-traded funds. Firms like BlackRock and Fidelity now offer spot Bitcoin funds, something unimaginable a few years ago. Their clients, once wary, now demand exposure to digital assets.
Central banks are also reassessing their positions. In a move, the Czech National Bank is reportedly looking forward to allocating up to 5% of its reserves into Bitcoin. While no official purchase has been confirmed, the discussion marks a shift in sentiment among monetary authorities.
Trump’s return to the presidency has driven policy speculation and market optimism around crypto assets. Analysts attribute the Bitcoin rally to hopes of massive deregulation, low interest rates, and a pro-cryptocurrency attitude with Trump in charge. In January 2025, Trump issued an executive order, 14178, that formed a cryptocurrency working group, prohibited a U.S. central bank digital currency, and established a strategic Bitcoin reserve consisting of forfeited assets. He also put in place pro-crypto government officials, most notably David O. Sacks, as crypto czar, and Paul Atkins as the chair of the SEC.
The fixed 21-million coin supply, which was once viewed as a drawback, is now seen as a strength. Given the impact that inflation and the depreciation of currencies have had on global economies, the scarcity narrative behind Bitcoin is attracting a surging number of investors. Such a shift in perspective is altering the way countries and organizations determine and maintain value.
Related: Bitcoin Hits $118K: What’s Fueling This Unstoppable Rally?
According to CoinMarketCap, Bitcoin currently trades at $118,085.87, reflecting a 0.2% dip in the past 24 hours. The market capitalization stands at $2.34 trillion, with a fully diluted valuation of $2.47 trillion. Daily trading volume has fallen by 49.25%, down to $61.53 billion. The 24-hour price ranged from a low of $116.5K to a high of $118.51K. The volume-to-market cap ratio sits at 2.61%.
