Sources: 
Bitcoin's price soared past
$110,000 in May 2025, surpassing its previous all-time high set in 2021, marking a significant milestone in the cryptocurrency's resurgence.
This surge is driven by several pivotal developments. In March 2025, the US government signed an executive order to establish a
Strategic Bitcoin Reserve, signaling a shift in perception as Bitcoin is now considered a legitimate strategic asset by the world's largest economy.
Additionally, the approval of
spot Bitcoin Exchange-Traded Funds (ETFs) in the US opened the floodgates for institutional and retail investment, providing easier access and increased legitimacy.
On the regulatory front, the European Union implemented the
MiCAR (Markets in Crypto-Assets) regulation, creating a unified and clear regulatory framework across 27 member countries, which is expected to boost investor confidence and market stability.
However, challenges remain, including the government's imposition of a
flat 30 percent tax on crypto gains, one of the highest rates globally, which could impact investor behavior.
These combined factors—regulatory clarity, institutional adoption, and strategic government positioning—are fueling the 2025 crypto comeback, positioning Bitcoin for potentially sustained growth.
"The establishment of a US Strategic Bitcoin Reserve marks a historic recognition of Bitcoin's role in the global financial system," said a market analyst.
"The MiCAR regulation provides much-needed clarity and harmonization for crypto markets across Europe," noted a European financial expert.
As Bitcoin breaks new ground, the evolving landscape suggests a maturing market with growing mainstream acceptance despite fiscal hurdles.
Sources: Bitcoin surged past $110,000 in May 2025, breaking its 2021 record amid a wave of regulatory and institutional developments. Key drivers include US approval of spot Bitcoin ETFs, a US Strategic Bitcoin Reserve, and the EU's MiCAR regulation, despite high crypto taxes in some regions.
