It is believed that the notable increase in the price of $BTC in 2025 is due to a combination of key factors. First, the growing institutional adoption has injected a significant amount of capital into the market, validating Bitcoin as a legitimate asset class. The approval and success of spot Bitcoin exchange-traded funds (ETFs) have facilitated investment for a broader audience.
Furthermore, the persistent concern about global inflation has led many investors to view $BTC as a digital store of value, similar to gold. The inherent scarcity of Bitcoin, with its maximum supply limited to 21 million coins, also plays a crucial role in increasing demand as adoption expands. Finally, technological advancements in the $BTC network, such as improvements in scalability and reductions in transaction fees, have enhanced its appeal and utility.