On May 21, 2025, Bitcoin reached a new all-time high (ATH) of $109,710.47, surpassing its previous record of $108,786 from January 20, 2025.


Headlines quickly lit up: “Bitcoin Sets New ATH!” But when we zoom out, the truth behind this milestone tells a different story. What if Bitcoin isn’t necessarily climbing — but fiat is falling?


Let’s look at the data behind this "record" and consider a new perspective: maybe we should stop measuring Bitcoin in fiat terms that keep devaluing faster every year.



The Numbers: What Changed Since January?


Bitcoin Price Movement (Nominal)


  • January 20, 2025: $108,786

  • May 21, 2025: $109,710.47

  • Nominal Increase: $924.47

  • Percentage Change: ≈ +0.85%


At face value, Bitcoin “rose” nearly 1%. But let’s introduce some economic context.



Inflation & M2: The Hidden Devaluation of Fiat


US Inflation (Jan–Apr 2025)


  • Annual CPI inflation as of April: 2.3%

  • Approximate inflation over 4 months: 0.77%


US Money Supply M2 Growth (Jan–Apr 2025)



  • M2 in January: $21.67 trillion

  • M2 in April: $21.76 trillion

  • Growth: $90 billion, or 0.42%


So while Bitcoin moved +0.85%, fiat itself devalued between 0.42% and 0.77% in the same timeframe — a crucial factor often ignored.



Real Price Adjustment: Is Bitcoin Actually Higher?


If we adjust January’s price of Bitcoin for 0.77% inflation:

  • Inflation-adjusted price:

    $108,786 × 1.0077 ≈ $109,624


Now compare that to the current ATH:

  • May 21 price: $109,710.47

  • Real difference: ≈ $86.47

  • Real percentage increase: 0.079%


Yes — Bitcoin only grew ~0.08% in real terms over four months. So did BTC break a new record? Not really. Fiat just lost more of its purchasing power.



Bitcoin’s “Rally” Is Fiat’s Collapse in Slow Motion


What we’re witnessing is not just Bitcoin going up. It’s the U.S. dollar silently shrinking.


Every fiat currency in history has devalued over time. Bitcoin, with its fixed 21 million supply and deflationary design, simply holds steady — and that stability reveals fiat’s weakness more than Bitcoin’s strength.


Measuring Bitcoin in fiat is like using a melting ruler. When the dollar loses 0.77% of value in just four months, a “record high” in BTC is nothing more than a reflection of fiat erosion.



A Call to Bitcoin Educators: Change the Narrative


If we want to truly educate people about Bitcoin in 2025 and beyond, we may need to shift our language. Saying “Bitcoin hits ATH” reinforces a fiat-centric worldview. It treats BTC as an asset that goes up and down — like a stock.


But Bitcoin is not rising. Fiat is falling. And Bitcoin is revealing it.


We don’t celebrate when gold keeps the same value and bread gets more expensive. We recognize that fiat is inflating. The same is true with BTC.



Final Thoughts


Bitcoin’s nominal ATH might excite traders — but the real value increase is negligible. In fact, it barely outpaces inflation.


Rather than chasing ATH headlines, we should ask deeper questions:


  • What’s happening to purchasing power?

  • How much fiat is being printed or lost to inflation?

  • What does Bitcoin reveal about the true state of our money?


Bitcoin isn’t just “pumping.” It’s holding the line — while fiat accelerates its race to the bottom.



Stay informed. Question the metrics. Educate beyond the price.

Learn more on Binance Academy or track the latest Bitcoin price.