Bitcoin is at an all-time high as a “perfect storm” has ensured a boost. The digital currency hit $124,000 per coin this week, and stock markets and crypto have surged. The price has doubled over the past year, is now contesting gold to become 2025’s best performing asset. It owes its high ranking to Exchange-Traded Fund (ETF) – an investment fund that contains a collection of underlying assets, such as stocks, bonds, or commodities – inflows acting as a catalyst, attracting fresh institutional capital at an extraordinary speed. Simultaneously, US Federal Reserve’s shift towards interest rate cuts has weakened the dollar and boosted the appetite for risk across the board.

Crypto has consequently benefitted “disproportionately”, David Siemer, the chief executive of Wave Digital Assets said. Wider uncertainty has also been sparked after the American government’s shutdown. Senators have failed to pass spending proposals for a fourth time. Two separate plans – one from the Democrats and one from Republicans – did not reach the required 60-vote threshold.

Speaking to Forbes , the expert added that these factors ensured an environment “where even modest demand creates outsized moves”.

Nigel Farage has been a vocal supporter of cryptocurrency in recent years, following in the footsteps of US president Donald Trump.

The Reform UK leader announced in May that his party would begin accepting donations in Bitcoin, and called for the Bank of England to create a “strategic reserve” of the digital asset.

He added the Bank was “turning their back on it [cryptocurrency] completely”.

In a speech earlier this week, the bank’s Governor, Andrew Bailey, said: “Crypto of the Bitcoin variety falls into the risky investment category, whereas stablecoins used for retail and wholesale payments, rather than just to support crypto trading, fall into the money category, or should do.

“Understanding the implications of this distinction is important for designing the approach to regulation.

“But, I will go further than that and say it should enable better stablecoins to emerge than would do in a world in which the distinction was not understood and followed up.”

In July, it was reported by the Telegraph that the Chancellor, Rachel Reeves, could sell of Bitcoin in the UK worth at least £5billion.

The Home Office was reportedly working with police forces to flog the seized cryptocurrency, with the move easing pressure on the Treasury.

Ministers were also planning to start an official crypto storage system that would handle sales of Bitcoin and other digital currencies.

UK businesses will be potentially attractive to European businesses after Brexit and Donald Trump’s trade tariffs, an expert has suggested. The current trade environment places British firms in a good position, they argued, as Britain has negotiated trade deals with both the US and EU, and Mr Trump announced 15% tariffs on most of the bloc’s exports. In addition, Switzerland, which is not an EU member, faces a 39% tariff – the highest in Europe and fourth highest globally. This has “left many Swiss firms grappling with the threat of severe economic repercussions”, Aman Parmar, Head of Marketing at BizSpace, a small to medium business (SME) flexible workspace firm.

The EU and the US announced on July 29 that a trade deal would see a 15% ceiling on all EU exports currently subject to reciprocal tariffs. This also applies to cars and car parts, as well as any potential future tariffs on pharmaceuticals and semiconductors. However, European wines and spirits did not make it on the list of items exempt from the 15% levy. A 10% tariff will remain in force for countries with which the US has a trade surplus, which includes most states.

The House of Commons outlined the UK’s tariffs on July 30 as follows. In March, President Trump imposed a 25% tariff on all aluminium, steel and derivative goods imports.

From April 3, there was a 25% tariff on all passenger vehicles and light trucks. Tariffs of 25% on automobile parts were due to be implemented from May 3.

From April 5, a 10% baseline tariff on imports from the UK, affecting most goods.

Mr Parmar added: “This dramatic difference in tariff conditions could position the UK as a key indirect beneficiary of these tariffs, enabling it to reclaim some of the trade and investment lost post-Brexit.”

The expert also said: “The aftermath of the 2016 Brexit referendum saw many British businesses shift operations to mainland Europe, leading to initial uncertainties and a decline in exports.

“However, the prospect of US President Trump’s newly imposed tariffs is prompting companies to reassess their strategies.

“Similar to the situation faced by smaller Swiss firms, particularly in the watch and machinery sectors, UK SMEs might find themselves in a position to attract displaced EU businesses.

“In Switzerland, for instance, a fifth of the watches and jewellery produced are exported to the US; analysts suggest that the impact of US tariffs will disproportionately affect the lower-end segments of these markets.”

Swiss government held crisis talks on Monday in an attempt to finalise a proposal that might dissuade US President Donald Trump from imposing 39% tariffs on the country, Bloomberg reported.

Mr Parmar said: “With Switzerland now facing a staggering 39% tariff – the highest in Europe and globally the fourth highest behind only Syria, Laos, and Myanmar – it underscores the vulnerability of smaller exporters, which the UK could leverage to attract businesses seeking more stable conditions.”