The cryptocurrency posted a 73.2 per cent return, far ahead of gold (41.8 per cent), copper (16.9 per cent), the ASX 200 (9.97 per cent) and the S&P 500 (13.6 per cent).
Charlie Sherry, head of finance at BTC Markets, said the narrative around bitcoin had shifted materially over the past year.
“It’s no longer about a retail investor thinking ‘Maybe I’ll throw in 1 per cent’,” he said. “Instead, we have institutional legitimisation via ETFs, family offices getting asked about crypto from their investors, and even executive teams pushing treasury strategy into crypto-native rails.”
“There’s a new level of adoption – and it’s deliberate.”
Sherry noted that bitcoin’s annualised volatility dropped 45–50 per cent during the year to currently sit at 33 per cent, down from the 100–150 per cent ranges seen in previous cycles. While still elevated compared to traditional assets like the Nasdaq (around 20 per cent), he said volatility had matured in line with the asset’s broader adoption.
“Continued institutional flows should continue to add stability,” Sherry said.
Speaking to InvestorDaily, Mena Theodorou, co-founder of cryptocurrency exchange Coinstash, said FY24–25 marked a defining year for bitcoin, with momentum showing no signs of slowing.
“We’re seeing record levels of institutional adoption, and corporations are adding bitcoin to their balance sheets at an unprecedented pace,” Theodorou said. “It feels like every other week, there’s another headline about a public company making a move into bitcoin.”
Moreover, he highlighted spot bitcoin exchange-traded funds (ETF), particularly in the US, are seeing record inflows.
“The demand is real, and we believe there’s still plenty of room for growth.”
While prevalent risks such as geopolitical tensions, regulations and macroeconomic disruptions remain, Theodorou said that “bitcoin has continued to weather the storm and outperform”.
“The long-term thesis remains unchanged. Just last week, the US passed a major tax bill expected to add US$3.4 trillion to the national debt,” he said.
“Moves like that only reinforce bitcoin’s appeal as a hedge against fiat debasement. Its fixed supply and built-in scarcity are what continue to attract investors globally.”
Digital gold thesis maintained
Zerocap associate Emir Ibrahim agreed the year marked a turning point in bitcoin’s evolution from a speculative asset to a strategic allocation.
“FY25 marked a milestone for bitcoin’s maturation. It wasn’t just marked by notional returns but rather structural evolution of the asset class: ETF access, rising treasury participation and normalisation of BTC exposure in diversified portfolios,” Ibrahim said.
He noted that bitcoin’s increasing correlation with gold reaffirmed its role as “digital gold”, while declining volatility and deeper liquidity reflected a more mature trading environment.
“Corresponding to this, its volatility, while still pronounced, has somewhat matured,” Ibrahim said, adding that bitcoin is morphing from a “speculative fringe asset to a macro-relevant, institutionally integrated investment vehicle”.
“FY26 may not necessarily deliver the same eye-popping returns, but it will likely build further legitimacy for bitcoin as a long-term portfolio allocation.”
Binance ANZ’s James Quinn-Kumar said bitcoin’s rise to the seventh-largest asset globally by market capitalisation reflected not just price momentum but also a structural shift in how the asset is being used in portfolios.
“That momentum reflects both strong macro liquidity conditions and a structural shift in how bitcoin is being positioned in portfolios,” he said.
Like other cryptocurrency pundits, Quinn-Kumar agreed that institutional investors remain crucial to bitcoin’s growth, as inflows into spot ETFs, corporates adding bitcoin to reserves and increasing interest from traditional finance players remain consistent.
“These flows point to bitcoin’s growing maturity as a strategic allocation, particularly as investors look for diversification and long-term hedges in an uncertain economic environment,” he said.
Looking ahead, Sherry said locally, policy will be crucial as Australia risks falling behind global cryptocurrency regulation.
Overall, he noted: “Expect more ETFs, more crypto treasury companies and more tokenised products.”
At 3pm AEDT on 7 July, bitcoin was trading at US$109,179.00.
