Bitcoin is rewriting the history of digital finance.
On March 5 at 11:05 PM, Bitcoin briefly surged to $69,005, crossing the $69,000 threshold for the first time since 2021. With this milestone, Bitcoin’s market capitalization reached $1.35 trillion—surpassing Meta Platforms and ranking among the top 9 most valuable assets globally. This achievement marks a new chapter in crypto history, 15 years after the genesis block was mined in January 2009. The door to a new bull market has opened, and the momentum appears unstoppable.
The Last Time Bitcoin Hit $69,000: A Liquidity-Fueled Rally
The previous peak at $69,000 in November 2021 was driven by macroeconomic forces—primarily unprecedented monetary stimulus.
When the pandemic hit in early 2020, the U.S. economy plunged into recession. The Federal Reserve responded with a powerful mix of zero interest rates and quantitative easing, slashing rates from 1.5% to near zero and launching unlimited bond purchases. Over 26 months, the Fed’s balance sheet ballooned from $4.2 trillion to $9 trillion—an increase of $4.8 trillion—far exceeding the post-2008 crisis expansion.
This flood of liquidity didn’t stay in traditional markets. With inflation rising and global uncertainty mounting—amplified by the Russia-Ukraine conflict—investors sought alternative stores of value. Bitcoin, with its fixed supply and decentralized nature, became a prime beneficiary.
👉 Discover how institutional capital reshaped Bitcoin’s trajectory in 2025.
In 2020 alone, Bitcoin surged over 300%, with nearly 50% of that gain coming in December. The momentum continued into 2021, climbing more than 120% by April, briefly touching $65,000. The year culminated in November when Bitcoin hit $69,000 for the first time—fueled by Coinbase’s landmark IPO, which debuted at an $86 billion valuation.
But the rally was short-lived. By mid-2022, tightening monetary policy and macro headwinds began reversing the tide.
The 2022 Collapse: From Terra to FTX
The year 2022 marked one of the darkest chapters in crypto history—a cascading series of failures triggered by flawed designs and excessive leverage.
It began with Terra (LUNA). On May 8, the Luna Foundation Guard (LFG) withdrew $150 million in UST liquidity from the Curve 3pool to build a Bitcoin-backed reserve. Minutes later, an unknown wallet dumped $84 million in UST, destabilizing the peg. In response, LFG pulled another $100 million—sparking panic. Whales began dumping UST on Binance, driving it below $0.95. With Anchor Protocol’s yields no longer sustainable, confidence evaporated.
By May 10, UST had collapsed to $0.60. The death spiral consumed LUNA, wiping out $40 billion in value overnight. Venture firms like Jump Trading and Galaxy Digital, who had promoted Terra alongside Solana and Avalanche under the “Solunavax” narrative, were caught off guard.
The fallout spread rapidly. Celsius Network, a CeFi giant with over 1.7 million users and $30 billion in assets, froze withdrawals due to liquidity crunches. Days later, stETH—the largest liquid staking derivative on Ethereum—began trading below its peg as fears of a proof-of-stake transition failure mounted.
Then came Three Arrows Capital, once managing $18 billion in crypto assets, which filed for bankruptcy after massive losses on Luna and other positions.
These events mirrored a financial contagion—what many dubbed crypto’s “Lehman Moment.”
FTX: The Fall of a Crypto Titan
Just months after Terra’s collapse, another shockwave hit: FTX imploded in November 2022.
The crisis erupted when a leaked balance sheet revealed that Alameda Research—founded by FTX CEO Sam Bankman-Fried—held vast amounts of FTT, FTX’s own exchange token, as collateral. This raised red flags about solvency and conflicts of interest.
Users rushed to withdraw funds. In a single night, FTX faced $6 billion in withdrawal requests. But customer assets were no longer available—allegedly loaned to Alameda. Within days, a $32 billion empire collapsed into an $8 billion hole.
SBF’s fall from grace was swift. Once hailed as a visionary backed by elite Silicon Valley investors, he now faces years in prison—his gaunt appearance in recent photos symbolizing the human cost of unchecked ambition.
Binance and Regulatory Resolution
With major players falling, regulatory scrutiny intensified. The biggest development came in late 2024 when Binance reached a $4.3 billion settlement with U.S. authorities—including the DOJ, CFTC, OFAC, and FinCEN—over compliance failures.
As part of the agreement, Binance admitted wrongdoing and committed to overhauling its compliance framework. Founder Changpeng Zhao (CZ) stepped down as CEO, succeeded by Richard Teng.
While painful, the resolution removed a major overhang for the market. Investors interpreted it as a sign that crypto’s regulatory path was clarifying—not closing.
👉 See how compliant platforms are shaping the future of digital assets.
With Binance settling its case, market confidence slowly returned. Bitcoin stabilized around $40,000, laying the groundwork for the next bull run.
The Game Changer: Spot Bitcoin ETF Approval
The true catalyst for Bitcoin’s 2025 resurgence? The approval of spot Bitcoin ETFs.
Unlike previous cycles driven by retail speculation or corporate balance sheet adoption (like Tesla), this rally is powered by institutional capital flowing through regulated channels.
Key milestones:
- August 30, 2023: Grayscale wins lawsuit against SEC, forcing reconsideration of ETF applications.
- October 2023: False reports of ETF approval briefly push Bitcoin above $34,000.
- January 11, 2025: SEC approves 11 spot Bitcoin ETFs, including products from BlackRock, Fidelity, and ARK Invest.
The impact was immediate. ETFs began attracting billions in net inflows:
- By late February 2025, total AUM surpassed **$40 billion**, up from $28.3 billion just weeks earlier.
- BlackRock’s IBIT alone reached $13 billion in daily trading volume, ranking among the top ETFs globally.
- IBIT’s Bitcoin holdings grew from 228 BTC to over 126,900 BTC—surpassing MicroStrategy’s holdings when combined with Fidelity’s fund.
This institutional adoption is fundamentally different: it’s sustainable, regulated, and scalable.
Why This Bull Market Is Different
- Lower leverage: Unlike 2021’s margin-heavy rally, current price action reflects organic demand.
- Diversified inflows: Multiple ETF providers reduce reliance on any single entity.
- Global reach: Traditional investors can now access Bitcoin through familiar brokerage accounts.
What’s Next? Predictions and Possibilities
Where does Bitcoin go from here?
Markus Thielen, lead crypto analyst at Matrixport, believes we’re only midway through this bull cycle. He forecasts Bitcoin could reach $125,000 between Q2 and Q3 of 2026, driven by continued ETF inflows and macro tailwinds.
“Gold ETF flows are now migrating into Bitcoin ETFs,” Markus said in a recent interview. “Bitcoin is evolving into a superior macro asset.”
He also warned of potential black swan risks—the most extreme being unauthorized access to Satoshi Nakamoto’s dormant wallet—but emphasized that systemic risks are lower than ever due to improved transparency and regulation.
👉 Explore how ETF adoption is transforming Bitcoin into a mainstream asset class.
Frequently Asked Questions (FAQ)
Q: What caused Bitcoin to rise back to $69,000 in 2025?
A: The primary driver was the approval of spot Bitcoin ETFs in January 2025, which unlocked billions in institutional capital through regulated investment channels.
Q: How is this bull market different from 2021?
A: This cycle is fueled by real net inflows via ETFs rather than retail speculation or excessive leverage. It's more sustainable and less prone to sudden collapses.
Q: Did FTX's collapse permanently damage crypto?
A: While FTX caused massive short-term damage to trust and liquidity, it ultimately accelerated regulatory clarity and better risk management across the industry.
Q: Is Bitcoin safer now than before?
A: Yes. Post-FTX reforms, increased transparency (e.g., proof-of-reserves), and regulatory settlements have strengthened market resilience.
Q: Can retail investors still benefit from this rally?
A: Absolutely. With ETFs available on major brokerages like Fidelity and Charles Schwab, retail access has never been easier or safer.
Q: What could derail the current bull run?
A: Major risks include unexpected regulatory crackdowns, global recession impacting risk appetite, or technological failures—but systemic vulnerabilities have significantly decreased since 2022.
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