The king of crypto assets, Bitcoin, again broke a new all-time high of $123,091.61, up over 66% since its April 2025 low. Now, everyone is wondering why everyone is behind Bitcoin and how this digital asset, which has no physical existence, is hitting new records and why everyone is crazy about this digital asset? So, the answer is simple: Bitcoin is not just a digital asset anymore, it is a weapon against inflation and a tool for all financial problems.
However, experts believe that the current rally of Bitcoin is not just because of market buzz or demand, it is something else. The Kobeissi Letter points out that BTC is going straight and it is not Normal. So is really something cooking or expert overcomplicating the current rally lets find out.
The Kobeissi Letter Warning: Bitcoin Enters ‘Crisis Mode’
According to the latest X post by The Kobeissi Letter, Bitcoin’s current rally is strange as the dollar is getting weaker and there is a surge in deficits, indicating a market in ‘crisis mode’. In the last 15 days, Bitcoin has gained about $15,000 as the U.S. government passed the “Big Beautiful Bill”
The king of crypto assets, Bitcoin, again broke a new all-time high of $123,091.61, up over 66% since its April 2025 low. Now, everyone is wondering why everyone is behind Bitcoin and how this digital asset, which has no physical existence, is hitting new records and why everyone is crazy about this digital asset? So, the answer is simple: Bitcoin is not just a digital asset anymore, it is a weapon against inflation and a tool for all financial problems.
However, experts believe that the current rally of Bitcoin is not just because of market buzz or demand, it is something else. The Kobeissi Letter points out that BTC is going straight and it is not Normal. So is really something cooking or expert overcomplicating the current rally lets find out.
The Kobeissi Letter Warning: Bitcoin Enters ‘Crisis Mode’
According to the latest X post by The Kobeissi Letter, Bitcoin’s current rally is strange as the dollar is getting weaker and there is a surge in deficits, indicating a market in ‘crisis mode’. In the last 15 days, Bitcoin has gained about $15,000 as the U.S. government passed the “Big Beautiful Bill”
The subscription-based service provider Kobeissi also pointed out the divergence between Bitcoin and the U.S. Dollar Index (DXY). In the last 6 months, Bitcoin made multiple highs while DXY fell by approximately 11%. The BTC is making a new high despite the data revealing a $316 billion U.S. deficit for May 2023 alone.
The analyst attributes this Bitcoin boom to huge institutional capital rotation after the enactment of major US spending legislation. Moreover, institutional adoption has been at an all-time high, with the Ishares Bitcoin Trust gaining over $76 billion worth of assets under management in less than 350 days, a milestone that the largest gold ETF took more than 15 years to reach. Even the most conservative institutional investors are now contemplating Bitcoin allocations of about 1% of their portfolios.
The combination of the increasing prices of BTC and the surging prices of gold and bond yields is what the market watchers refer to as a strange flight to alternative assets. This trend indicates that investors are hedging against possible debasing of currencies due to the rising deficit spending fears, and Bitcoin is becoming a hedge against fiscal instability as opposed to being a speculative asset.
Moreover, the analyst clarified the crisis mode by stating, “When we say Bitcoin has entered ‘crisis mode,’ this isn’t necessarily a bearish call for other assets. In fact, risky assets will continue to run higher as the short-term effects of more deficit spending are’bullish.”
Bitcoin Rally Buzz or Something Big?
So, is the current rally just a buzz or something big? The answer is Bitcoin turned the whole financial game, the analysts calling this rally abnormal but it is a shift toward mainstream institutional dominance. Data shows everything and the current data point to a structural shift in how the world perceives cryptocurrency.
Not only the big institutions and government but now small investors are also getting more interested in Bitcoin. According to recent data by Bitfinex, the retail demand for Bitcoin is outspacing its supply. Small investors such as Shrimp (<1 BTC), Crab (1–10 BTC), and Fish (10–100 BTC) are accumulating about 19,300 BTC per month, which exceeds the post-halving supply of about 13,400 BTC per month.
The spike in demand for Bitcoin from both retail and institutional investors clarifies that the crypto is now going more mainstream, and now people are taking it as a serious financial investment option.
Final Thoughts
This is not a mere crypto rally, but the transformation of Bitcoin into a bedrock of institutions. The combination of deficit spending, dollar weakness and unprecedented institutional adoption are indicators of a paradigm shift in world finance. When conservative investors commit 1% portfolio to Bitcoin when retail demand is greater than supply, we are seeing history in the making.
The crisis mode is not chaos, it is clarity. Bitcoin has gone beyond being a digital currency to be the ultimate hedge against fiscal uncertainty. This rally is not hype, it is the emergence of a new monetary paradigm that is redefining the way the world stores and transfers value forever.