Bitcoin Surges 31% Post-Halving, Hits New All-Time High

Bitcoin’s current bull market is redefining its role in modern investment portfolios, according to a recent report from Fidelity Digital Assets. The report highlights that Bitcoin’s performance and the influx of new buyers indicate a maturing market with widening adoption. Key indicators such as a 50% rise in hashrate and a 63% jump in Realized Cap underscore investors’ growing confidence in Bitcoin.

At block height 892,500, marking 25% progress into the current halving epoch, Bitcoin traded between $82,500 and $85,000. This represents a 31% increase from its value on April 19, 2024, when the fourth halving reduced block rewards to 3.125 BTC. Fidelity’s senior research analyst Daniel Gray emphasized Bitcoin’s network resilience, noting a 50% surge in hashrate since the halving. This increase signals strong miner commitment despite reduced rewards. Unlike previous cycles marked by post-halving rallies, the 2024–2025 phase has been characterized by steadier, more measured growth.

The Puell Multiple, an indicator of miner revenue relative to Bitcoin’s price, has stabilized, suggesting that the market is adjusting to lower issuance without significant volatility. The report explains that Bitcoin’s more muted returns likely reflect a market digesting several extrinsic tailwinds and headwinds, which have inevitably caused some uncertainty. Historically, this mid-epoch phase has coincided with new all-time highs, an event that occurred this week. Fidelity noted that this growth could extend into Q2 2025, potentially redefining Bitcoin’s position as a credible asset class in modern portfolios.

Bitcoin’s Realized Cap, which measures cumulative net capital inflows, has surged 63% since the 2024 halving, climbing to $915 billion from $561 billion. This trend fits within Bitcoin’s long-term trajectory, where Realized Cap has risen with each halving, indicating a maturing asset with substantial growth progression. The current bull market cycle is also distinguished by record-breaking levels of institutional investor and corporate-level participation. The approval of spot Bitcoin exchange-traded funds (ETFs) in the US in January 2024 has ushered in $134 billion in inflows, while monthly trading volumes on platforms soared past $1 trillion in March 2024—a massive leap from just $11 billion in January 2018.

Public companies’ strategic accumulation of Bitcoin, most notably Strategy, now holding 576,230 BTC, also sets a new industry blueprint. Firms like Metaplanet Inc., Bitcoin Group SE, and Semler Scientific have since followed suit, validating Bitcoin’s role as a corporate treasury asset this cycle. Thus, Gray asserts that Bitcoin’s fundamentals and global recognition are “stronger than ever,” signaling a cycle of growth, institutional anchoring, and market resilience.

Bitcoin has recently surged past $111,000, marking a new all-time high and sparking fresh predictions that the cryptocurrency could reach $120,000 in the near future. This surge is not merely a fleeting spike but a decisive breakout driven by several key factors, including record-breaking institutional demand, regulatory clarity, and a growing global appetite for digital assets amidst economic uncertainty. The momentum behind this rally is fueled by several converging forces. Institutional investors, such as major asset managers, are pouring billions into Bitcoin ETFs, which have become popular vehicles for both institutional and retail investors. The April 2024 halving event, which reduced the new Bitcoin supply by 50%, has amplified the scarcity narrative, further driving demand. Additionally, the Federal Reserve's decision to hold interest rates steady and signal potential rate cuts later in 2025 has led investors to seek refuge in risk-on assets like Bitcoin. Clearer guidelines from U.S. financial regulators have also removed some of the ambiguity that previously hindered institutional involvement in crypto, allowing major banks and pension funds to comfortably allocate capital into BTC.

Analysts are optimistic about Bitcoin reaching $120,000 this month. The technical breakout momentum, with Bitcoin blasting through $111,000 with strong volume, suggests little resistance between current levels and the $120,000 mark. Spot Bitcoin ETFs have absorbed over $3 billion in new funds over the past two weeks, indicating sustained demand. Long-term holders and institutions show little interest in selling, reducing overhead resistance and clearing the runway for further upside. Global uncertainty, including geopolitical instability and fears of a debt-driven slowdown in traditional markets, has boosted Bitcoin's appeal as a macro hedge.

The institutional embrace of Bitcoin marks a significant shift in its perception, from a speculative bet to a strategic allocation. Major financial institutions are now advising clients to consider digital asset allocations and launching BTC-linked products. This institutional support is expected to trigger a wave of mainstream media coverage, increased attention from central banks and sovereign investors, and a bullish spillover into altcoins like Ethereum and Solana. If Bitcoin reaches $120,000, it could signal a structural shift in the perception of Bitcoin as a core asset for sovereign wealth funds and retirement portfolios. However, investors are warned to watch out for short-term volatility, as even in a bull run, nothing moves in a straight line. The macro picture remains bullish, with powerful tailwinds in Bitcoin's favor, making the $120,000 target increasingly likely.