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Bitcoin is trading at all-time highs, surging beyond £93,000 for the first time.

The world’s biggest cryptocurrency has doubled in value over the past 12 months – buoyed by Donald Trump’s return to the White House.

However, its 10% surge over the past week is down to one specific factor: the US government shutdown.

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US government shuts down

Experts have told Sky News that the drama unfolding in Washington is undermining trust in the dollar – and pushing investors to alternatives.

Bitwise senior associate Max Shannon said stubbornly high inflation, which erodes spending power, is another factor.

Some countries are also increasing their monetary supply – watering down the value of cash in circulation – with government borrowing on the rise.

That’s led to what’s known as a “debasement trade”, where investors pile their cash into so-called “hard” assets like Bitcoin and gold instead.

Bitcoin has a fixed supply, meaning no more than 21 million will ever exist. Almost 95% of them are already in circulation, with a small number of coins entering the market every day.

Enthusiasts argue this creates a form of scarcity that pushes prices up, as demand for BTC is considerably higher than supply.

Bitcoin's doubled in value over the past year. Pic: CoinMarketCap
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Bitcoin’s doubled in value over the past year. Pic: CoinMarketCap

The latest figures from the Financial Conduct Authority suggest about seven million people in the UK have invested in cryptocurrencies. A single coin can be broken up into 100 million pieces, meaning many have a tiny chunk of Bitcoin in their portfolios.

But much of the current enthusiasm for Bitcoin isn’t coming from everyday investors – instead, it’s institutions leading the charge.

Deep-pocketed companies and individuals are buying into exchange-traded funds (ETFs) on Wall Street that track Bitcoin’s value – allowing them to gain indirect exposure to BTC’s price rises without owning it directly. A staggering $3.5bn (£2.6bn) flowed into these products last week.

Samson Mow is the chief executive of JAN3, a company that promotes Bitcoin adoption. He played a role in El Salvador becoming the first country in the world to adopt this cryptocurrency as legal tender.

While that experiment didn’t achieve widespread success, the Central American nation continues to invest in BTC – with estimated profits of more than £350m as a result.

When asked why Bitcoin has hit all-time highs, Mow told Sky News: “Bitcoin has been a ball pushed underwater for months – this move up was inevitable. Raw demand has simply caught up with the incredibly limited supply.”

He pointed to how 6.7% of Bitcoin’s supply is now tied up in ETFs – with Strategy, a company that has the goal of accruing as much BTC as possible, owning a further 3%. This means there’s less to go around overall, in what Mow describes as “the beginning of a massive supply shock”.

Samson Mow is a vocal Bitcoin supporter. Pic: Reuters
Image:
Samson Mow is a vocal Bitcoin supporter. Pic: Reuters

The entrepreneur believes a single Bitcoin will one day be worth $500,000 (£371,000), meaning the cryptocurrency’s total market capitalisation would surge to $10trn (£7.4trn). That’s more than double what Nvidia’s currently worth as the world’s most valuable company, and would make BTC the second-largest asset after gold.

Mow shrugged off any suggestion Bitcoin’s dramatic price rises aren’t sustainable – and insists the only thing that’s “definitely not sustainable” is BTC’s value remaining as low as it is.

“There are only 21 million BTC. Most corporations, billionaires, and even millionaires still have no exposure to Bitcoin. Nation-states have yet to seriously begin accumulation too, but many that we’re engaged with are very interested and are looking to move quickly,” he said.

Of course, not everyone shares his enthusiasm. Critics argue Bitcoin lacks intrinsic value, with some claiming it’s “worse than a Ponzi scheme”.

David Gerard, a journalist who’s deeply sceptical of the crypto industry, told Sky News that Bitcoin suffers from thin trading volumes – resulting in “unfeasibly volatile prices” and an “easily manipulated market”.

“Bitcoin trading is overwhelmingly in unregulated offshore exchanges, so Bitcoin is not a well-functioning market in the sense of, say, stocks,” he said. “If investors treat Bitcoin as a well-regulated market, they will get burned. ETFs are regulated instruments, the way Bitcoin’s price is set is not.”

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The £5bn Bitcoin battle

Gerard has railed against BTC for years, and wrote a book condemning the sector in July 2017. But in the eight years since it was published, Bitcoin’s price has risen by more than 5,200%. Has this changed his views?

“Everything that’s structurally wrong with Bitcoin is still wrong with Bitcoin,” he said. “Anyone who sees the big number and thinks ‘time to get in’ is the sucker the big boys are making their money from.

“You can definitely make money in Bitcoin! But statistically, you’re much more likely to be the sucker.”

Some banks, including Morgan Stanley, now encourage their clients to allocate 2% to 4% of their portfolios into crypto – but doing so when prices are so high is risky.

While it’s possible Bitcoin could keep on rising, this is an asset also known for punishing pullbacks that have seen investors, including people right here in the UK, lose a lot of money.

This tends to happen every four years. BTC surged to a record price of $20,000 in December 2017, but plunged by more than 80% a year later – falling below $4,000.

Another all-time high of $69,000 then followed in November 2021 – but 12 months on, a spectacular crash dragged it back down to $17,000, a 75% drop.

Four years on in October 2025, here we are again: BTC has never been higher. History doesn’t always repeat itself – but if past performance is a guide, 2026 could prove challenging.

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Russian spy ship on edge of UK waters, warns defence secretary

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Russian spy ship on edge of UK waters, warns defence secretary

A Russian spy ship is currently on the edge of UK waters, the defence secretary has announced.

John Healey said it was the second time that the ship, the Yantar, had been deployed to UK waters.

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Giving a news conference in Downing Street, he said: “A Russian spy ship, the Yantar, is on the edge of UK waters north of Scotland, having entered the UK’s wider waters over the last few weeks.

“This is a vessel designed for gathering intelligence and mapping our undersea cables.

“We deployed a Royal Navy frigate and RAF planes to monitor and track this vessel’s every move, during which the Yantar directed lasers at our pilots.

“That Russian action is deeply dangerous, and this is the second time this year that this ship, the Yantar, has deployed to UK waters.”

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Mr Healey added: “So my message to Russia and to Putin is this: we see you, we know what you’re doing, and if the Yantar travels south this week, we are ready.”

His warning comes following a report from MPs that the UK lacks a plan to defend itself from a military attack, despite the government promising to boost readiness with new arms factories.

At least 13 sites across the UK have been identified for new factories to make munitions and military explosives, with Mr Healey expecting the arms industry to break ground at the first plant next year.

The report, by the Commons Defence Committee, said the UK “lacks a plan for defending the homeland and overseas territories” as it urged the government to launch a “co-ordinated effort to communicate with the public on the level of threat we face”.

Mr Healey acknowledged the dangers facing the UK, saying the country was in a “new era of threat” that “demands a new era for defence”.

Giving more details on the vessel, he said it was “part of a Russian fleet designed to put and hold our undersea infrastructure and those of our allies at risk”.

Russian Ship Yantar. Pic: Ministry of Defence
Image:
Russian Ship Yantar. Pic: Ministry of Defence

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He said the Yantar wasn’t just part of a naval operation but part of a Russian programme driven by Moscow’s Main Directorate of Deep-Sea Research, or GUGI, which is “designed to have capabilities which can undertake surveillance in peacetime and sabotage in conflict”.

“That is why we’ve been determined, whenever the Yantar comes into British wider waters, we track it, we deter it and we say to Putin we are ready, and we do that alongside allies,” he added.

Asked by Sky News’ political correspondent Rob Powell whether this was the first time that lasers had been used by a Russian vessel against pilots, Mr Healey replied: “This is the first time we’ve had this action from Yantar directed against the British RAF.

“We take it extremely seriously. I’ve changed the Navy’s rules of engagement so that we can follow more closely, monitor more closely, the activities of the Yantar when it’s in our wider waters. We have military options ready.”

Mr Healey added that the last time the Yantar was in UK waters, the British military surfaced a nuclear-powered attack submarine close to the ship “that they did not know was there”.

The Russian embassy has been contacted for comment.

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South Korea: All 267 passengers and crew rescued from ferry that ran aground, says coastguard

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South Korea: All 267 passengers and crew rescued from ferry that ran aground, says coastguard

More than 250 passengers on board a ferry that ran aground off the South Korean coast have been rescued, according to the coastguard.

It said the Queen Jenuvia 2, travelling from the southern island of Jeju to the southwestern port city of Mokpo, hit rocks near Jindo, off the country’s southwest coast, late on Wednesday.

A total of 267 people were on board, including 246 passengers and 21 crew. Three people had minor injuries.

All on board were rescued. Pic: Yonhap/Reuters
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All on board were rescued. Pic: Yonhap/Reuters

Footage showed passengers wearing life vests waiting to be picked up by rescue boats, which were approaching the 26,000-tonne South Korean ferry.

Its bow seemed to have become stuck on the edge of a small island, but it appeared to be upright and the passengers seemed calm.

Weather conditions at the scene were reported to be fair with light winds.

South Korea’s Prime Minister Kim Min-seok ordered all available boats and equipment to be used to rescue those on board, his office said.

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The coastguard received a report of the incident late on Wednesday, and immediately deployed 20 vessels and a plane to join the rescue effort.

It was not immediately clear what caused the vessel to run aground.

The vessel can carry up to 1,010 passengers and has multiple lower decks for large vehicles and passenger vehicles, according to its operator Seaworld Ferry.

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In 2014, more than 300 people, mostly schoolchildren heading to Jeju on a school trip, died when the Sewol ferry sank.

It was one of the country’s worst disasters.

The ship went down 11 years ago near the site of Wednesday’s incident, though further off Jindo.

After taking a turn too fast, the overloaded and illegally-modified ferry began listing.

It then lay on its side as passengers waited for rescue, which was slow to come, before sinking as the country watched on live television.

Many of the victims were found in their cabins, where they had been told to wait by the crew while the captain and some crew members were taken aboard the first coastguard vessels to arrive at the scene.

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A Bond-villain ship prowling our waters: Why the Yantar alarms the West

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A Bond-villain ship prowling our waters: Why the Yantar alarms the West

The Yantar may look scruffy and unthreatening but below the surface it’s the kind of ship a Bond villain would be proud of.

In hangars below decks lurk submersibles straight out of the Bond film Thunderball. Two Consul Class mini manned subs are on board and a number of remotely operated ones.

It can “undertake surveillance in peacetime and sabotage in conflict”, in the words of Britain’s Defence Secretary John Healey.

The Russian spy ship Yantar. Pic: MOD/PA
Image:
The Russian spy ship Yantar. Pic: MOD/PA

Cable-cutting equipment combined with surveillance and intelligence gathering capabilities make this a vessel to be reckoned with.

Most worryingly though, in its most recent tangle with RAF planes sent to stalk it, the Yantar deployed a laser to distract and dazzle the British pilot.

Matthew Savill, from the Royal United Services Institute, told Sky News this was potentially a worrying hostile act.

He said: “If this had been used to dazzle the pilot and that aircraft had subsequently crashed, then maybe the case could be made that not only was it hostile but it was fundamentally an armed attack because it had the same impact as if they’d used a weapon.”

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The Yantar is off our waters and here to threaten the West’s Achilles heel, says our government. Undersea infrastructure is essential to our hyper-connected world.

Undersea cables are the vital nervous system of Western civilisation. Through them courses the data that powers our 21st century economies and communications systems.

Pipelines are equally important in supplying fuel and gas that are vital to our prosperity. But they stretch for mile after mile along the seabed, exposed and all but undefended.

Their vulnerability is enough to keep Western economists and security officials awake at night, and Russia is well aware of that strategic weakness.

The Russian spy ship Yantar. Pic: MOD/PA
Image:
The Russian spy ship Yantar. Pic: MOD/PA

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That is why some of the most sophisticated kit the Russian military possesses is geared towards mapping and potentially threatening them.

The Yantar’s concealed capabilities are currently being used to map that underwater network of cables and pipelines, it’s thought, but they could in the future be used to sabotage them. Russia has been blamed for mysterious underwater attacks in the recent past.

A more kinetic conflict striking at the West’s soft underwater underbelly could have a disastrous impact. Enough damage to internet cables could play havoc with Western economies.

It is a scenario security experts believe the West is not well enough prepared for.

Putting the Yantar and its Russian overseers on watch is one thing; preventing them from readying for such a doomsday outcome in time of war is quite another.

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