Bitcoin Surges 28% in 2025, Hits $122,055 on Tariffs, Inflation Fears

Bitcoin's recent surge to new all-time highs, briefly touching $122,055, has been driven by a mix of macroeconomic pressures, investor optimism, and increased institutional participation. This rally has been fueled by factors such as the U.S. President's announcement of a 30% tariff on EU and Mexican imports, which has ignited safe-haven demand and pushed capital into risk-tolerant assets like Bitcoin. The cryptocurrency has seen a strong year-to-date performance, now up over 28% in 2025.

The upcoming U.S. inflation data is a key focus for traders and analysts, as it could either extend or momentarily pause the current rally. Forecasts predict that the headline Consumer Price Index (CPI) could rise 0.25% month-over-month, equating to 2.6% year-over-year growth, while the core CPI (excluding food and energy) is expected to rise 0.3% monthly, with a 3% annual gain. If inflation prints higher than expected, it could delay the Federal Reserve’s anticipated rate cuts, which may introduce short-term volatility into Bitcoin markets. However, analysts believe any downside could be limited due to strong ETF inflows, increasing corporate Bitcoin adoption, and a favorable U.S. regulatory environment.

Bitcoin’s price rally is also supported by billions in inflows into U.S. spot Bitcoin ETFs. Major corporations, including publicly listed firms, have recently made significant BTC purchases for their treasuries. This influx of institutional interest is helping to solidify Bitcoin’s status as a mainstream asset class, reducing its previous reliance on speculative retail momentum. As regulatory clarity improves in the U.S., more institutions are expected to enter the market, adding further fuel to the ongoing rally.

From a technical perspective, Bitcoin’s breakout above $120,000 confirms a bullish continuation pattern. The recent dip to $96,000 in late June is now viewed as a healthy correction, setting the stage for the current leg higher. Macro conditions, such as trade tensions, elevated inflation risk, and monetary policy uncertainty, have created a perfect storm of demand for decentralized assets. This environment is increasingly favorable for Bitcoin to act as both a hedge and a growth vehicle.

Analysts, including John Glover, CEO of crypto financial services platform Ledn, remain bullish on Bitcoin’s prospects. Glover stated that the end of the corrective wave (ii) and the continuation of the larger bullish Wave 5 have been confirmed. He revised his timeline for Bitcoin’s target, now expecting BTC to hit $136,000 by year-end, as opposed to early 2026. This target is supported by wave-based technical analysis and increasing market confidence.

In conclusion, with strong macro tailwinds, technical confirmation, and rising institutional demand, Bitcoin appears well-positioned to continue its upward trajectory. Analysts believe the next leg could take the price to $136,000 before 2026, potentially sooner if inflation remains in check and tariffs further destabilize fiat markets. For now, Bitcoin’s break above $120,000 represents more than a price milestone—it marks a shift in how the digital asset is viewed amid changing global financial dynamics.