Crypto Investment Surges as Bitcoin Eyes New High

Australian investors are doubling down on cryptocurrency as Bitcoin rebounds toward record levels, but questions remain over long-term stability. With Bitcoin surpassing US$100,000 and edging close to its January high of US$109,000, confidence is booming, but geopolitical tensions and economic shifts could still swing the market.

Earlier this year, Bitcoin dipped to US$74,000 amid global uncertainty, driven partly by the US political climate and trade tensions. But as doubt grew around the dollar’s dominance, investors started rethinking their strategies. This triggered a surge in interest in digital assets, especially among Australians turning away from traditionally US-centric holdings.

The rally gained further strength in April when global Bitcoin ETFs saw fresh inflows of US$2.9 billion, a striking contrast to the US$5 billion in outflows during February and March. In Australia alone, crypto ETFs attracted AU$148 million in 2025 so far, twice last year’s number over the same period. Local investors have remained consistent since March, adding AU$6.9 million that month and AU$20.5 million in April.

There’s growing momentum beyond Bitcoin too. Ethereum rose by as much as 33% in one week, driven by improved network updates and reduced fees, part of a wider push to stay competitive amid fast-moving rivals like Solana. Meanwhile, backing from US political leadership and even the launch of a government-backed memecoin have added optimism. A high-profile crypto gala set for May 22 hints at more bullish signals to come.

Long-term, digital regulation looks set to play a defining role. Several US states are exploring proposals for strategic Bitcoin reserves, and Australia’s crypto sector is optimistic about future reforms following a supportive election outcome. The direction of crypto’s growth seems increasingly shaped by not just market forces, but also institutional trust and policy development.

Source: Australian Financial Review, AI Invest, Statista.