Written by Haider Saleem
Financial and Political Analyst | LinkedIn / X

Date: May 9, 2025

Bitcoin just crossed the $100,000 mark – its highest level since January 2024. For global Muslim investors, this moment offers both intrigue and caution.

Whether you’re actively following the crypto markets or just beginning your halal investment journey, this milestone is more than just a headline – it’s a signal of evolving financial and technological trends.

This article explores:

1. What’s behind Bitcoin’s recent price surge
2. Whether it’s a long-term store of value or speculative asset
3. The geopolitical context shaping its future
4. What this means for Muslims considering halal investment strategies

Bitcoin Hits $100,000: What’s Driving the Surge?

Bitcoin surged above $102,000 this week, fueled by a mix of market optimism, policy developments, and renewed interest from large institutions.

One major driver is growing speculation that the U.S. and key players in the crypto industry — including Coinbase — are reaching favorable trade and regulatory agreements. Reports indicate that Coinbase has made progress negotiating tariff-related deals, which signal a more accommodating environment for crypto firms operating across borders .

At the same time, expectations that the U.S. Federal Reserve may pause or reduce interest rates this year have increased investor appetite for riskier assets — including digital currencies. This is part of a broader trend: as inflation stabilizes and equities rebound, Bitcoin often benefits from rising speculative enthusiasm.

Importantly, this rally isn’t just happening in isolation. Bitcoin has increasingly been influenced by macroeconomic trends, geopolitical shifts, and mainstream financial narratives — much like traditional assets.

Store of Value or Speculative Asset?

Bitcoin is often called “digital gold” — a term reflecting its fixed supply of 21 million coins, decentralized network, and potential as a hedge against currency debasement. Some investors see it as a modern store of value, particularly in regions experiencing economic instability or currency depreciation.

But this label is still debated. Bitcoin remains highly volatile: even this year, its price has swung by thousands of dollars within days. While long-term holders point to strong historical gains, short-term investors face exposure to sudden losses.

For Muslim investors, this raises important questions. The speculative nature of Bitcoin’s price movement may not align with principles of risk-sharing and ethical certainty that underpin Islamic finance. While some view Bitcoin as an emerging asset class with long-term utility, others argue it remains too unstable and uncertain to qualify as halal investment material.

The Geopolitical Context: A Shift Toward Mainstreaming?

Bitcoin’s price surge isn’t just about technology or market sentiment — it’s also a story of policy and power.

Recent U.S. signals suggest a potential thawing of regulatory hostility toward crypto. Coinbase’s success in negotiating trade-related matters hints that policymakers may be more willing to support — or at least tolerate — digital asset expansion .

For Muslim-majority countries, this is significant. In recent years, nations like the UAE, Malaysia, Indonesia, and Turkey have introduced frameworks to regulate — rather than ban — crypto usage. This signals a shift: from fearing crypto to managing it. If global trade policy begins to accommodate digital assets, it could open doors for broader crypto participation — including among ethically-conscious investors.

Still, uncertainty remains. Many governments continue to express concern over crypto’s role in money laundering, illicit finance, or market instability. Muslim investors must therefore navigate not just halal considerations, but also political and regulatory risk.

Is It Halal to Invest in Bitcoin? A Brief Note

The question of whether Bitcoin is halal does not have a single, universally agreed-upon answer.

Some scholars view cryptocurrencies — particularly Bitcoin — as digital assets with real-world utility and value. They argue that owning and trading them, provided there is no involvement in prohibited activities (like gambling or excessive speculation), can be halal.

Others take a more cautious view, citing concerns about Bitcoin’s volatility, lack of intrinsic value, or speculative trading behavior that may resemble gharar (excessive uncertainty) or maysir (gambling).

Muslim investors are encouraged to refer to qualified scholars and Islamic finance experts when evaluating the permissibility of such assets.

What Muslim Investors Might Consider

Bitcoin’s rise above $100,000 is a major financial event — but what should halal-conscious investors take from it?

Here are a few considerations:

• Volatility remains high

While recent gains are impressive, the crypto market can reverse quickly. Muslim investors should avoid making decisions based solely on short-term price movements.

• Long-term outlook is uncertain

Is Bitcoin truly digital gold, or just a speculative bubble? Analysts and economists continue to debate its future use case.

• Shariah status varies

Since there is no unified scholarly consensus, individual investors must decide based on their own research and the opinions of trusted experts.

• Diversification matters

Even if one views Bitcoin as halal, it should not dominate a portfolio. Balanced exposure — across halal equities, gold, sukuk, and other asset classes — remains important.

As interest in crypto grows, platforms like Musaffa can support investors by providing halal screening tools, financial education, and insights tailored for ethically-minded portfolios.

Conclusion

Bitcoin’s break past $100,000 is more than just a number – it’s a reflection of how financial systems are changing in real time.

For Muslim investors, this moment is both a signal and a challenge: to understand new technologies, weigh ethical boundaries, and decide what role, if any, such assets should play in a halal portfolio.

References

1. Reuters – Bitcoin Tops $100,000 on Trade Deal Optimism, May 8, 2025: Reuters article
2. Yahoo Finance – Bitcoin Hits Highest Level Since January After Coinbase Tariff Deals, May 7, 2025: Yahoo Finance article
3. IslamicFinanceGuru – Crypto Guides and FAQs
4. Qardus – What is Cryptocurrency and is it Halal?

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