BTC (or Bitcoin in short) hit its all-time high last week. 

I was shook.

When I first saw the price hit >$110k last week, I had to double check whether it was a glitch. LOLOL.

bitcoin share price
Source: Artemis

At first, I had no idea why.

So I did a little digging, let me bring you through what I found.

Whether you are a crypto-curious or a long-time holder, the question on everyone’s mind is: why did this happen, and can it last?

TL;DR

  1. Why BTC >110k? ETF inflows + supply shock + macro tailwinds
  2. Sustainable? Maybe…over the short-term but I do have some doubts
  3. Skeptics – market cap limits, no cash flows, hard to value
  4. Is 200k possible? Bull case: digital gold thesis plays out, etfs attracts institutional money and scarcity narrative beats utility

What is Bitcoin, really?

Bitcoin is a digital currency, but not like Venmo or PayNow.

It is decentralized (well, mostly), which means there is no government, bank or single company that controls it. Instead, it runs on a global network of computers using what we call `blockchain` – it is a fancy word for a public ledger that tracks every transaction, forever.

The simplest way to think of it:

  • Gold = scarce physical asset
  • Bitcoin = scarce digital asset

There will only ever be 21 million BTC

No printing more, no bailouts. 

It’s money with a fixed supply, built for the internet.

Bitcoin’s value doesn’t come from cash flows or company profits. 

It gets its value from belief, belief in its scarcity, independence from governments, and in its potential as “digital gold.”

Why Did Bitcoin Cross $110K?

3 key drivers explain this rally:

  1. ETF Inflows
    The launch of Bitcoin spot ETFs (Yes, looking at you:

This isn’t just crypto bros and liquid token funds anymore.

This is Wall Street entering the chat.

  1. Supply Shock

Just last year, in April 2024, the halving for BTC occurred which caused the reduction of the rewards from 6.25 to 3.125 per block.

If demand stays the same (or increases) and while supply drops, we all know what happens.

Basic economics says: price goes up.

  1. Macro Tailwinds

The Fed is holding rates steady despite economic uncertainty, this suggests we might be near the peak of this rate cycle.

This opens the door to future easing which makes Bitcoin more attractive as a macro hedge and store of value.

Plus:

  • Inflation is sticky.
  • Geopolitical uncertainty is rising. US-China trade war.

The result? 

Investors are hunting for alternative assets with asymmetric upside.

BTC kinda fits that bill.

Is This Sustainable?

Here’s where I turn a little skeptical.

  1. Bitcoin doesn’t generate cash flow. 

Unlike stocks, you’re not holding BTC for dividends. It is a pure bet someone else will value it more in the future.

  1. Valuation is narrative-driven. 

Sure, it’s “digital gold”, but we’re still figuring out what that really means. 

There’s no P/E ratio. No multiples to value. No DCF model.

Just belief and demand

  1. $2T+ is already priced in. 

For BTC to double to $200K, we’d be looking at ~$4 Trillion market cap, that’s more than any company in the world today. 

And gold, which has 5,000 years of trust, is ~$22 Trillion

BTC? It’s only been around 15 years old.

Can BTC Hit $200K?

Yes, but it needs a few stars to align:

  • Institutions keep allocating. If sovereign wealth funds, pensions, or central banks start buying, demand could explore.
  • The “Digital Gold” thesis plays out. If Bitcoin captures 15–20% of gold’s market cap, $200k might be within reach.
  • Scarcity narrative gets stronger. With 21M BTC cap, no CEO can dilute your share. That’s powerful in a world full of quantitative easing and debt.

My Final Take

Bitcoin over $110K isn’t just a number, it is a signal. 

A signal that mainstream finance is beginning to embrace crypto as a legitimate macro asset.

Is it frothy? Probably.
Is it over? Not yet.
Is it the future? Still undecided. 

But I’m watching closely.

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