Bitcoin Smashes Record as U.S. Opens Doors to Crypto
- Bitcoin hit a new all-time peak of $124,002.49, driven by Fed rate cut expectations and U.S. crypto reforms.
- Trump administration moves, including allowing crypto in 401(k) accounts, have fueled institutional demand.
- Global crypto market cap has jumped to $4.18 trillion, with Ethereum hitting its highest level since 2021.'
Bitcoin surged to an all-time high, buoyed by growing expectations of Federal Reserve interest rate cuts and a wave of favorable regulatory developments in the United States. The world’s largest cryptocurrency climbed as much as 0.9% to $124,002.49 in early Asia trading, surpassing its previous peak set in July.
Ethereum, the second-largest cryptocurrency, also rallied, touching $4,780.04 its highest level since late 2021. Analysts say the rally is being driven by optimism over easier U.S. monetary policy, sustained institutional demand, and pro-crypto reforms introduced by the Trump administration.
“Technically, a sustained break above $125,000 could propel BTC to $150,000”, said IG market analyst Tony Sycamore in a note. Bitcoin is already up nearly 32% in 2025, fueled by regulatory wins and growing political support for digital assets.
Since returning to the White House, President Donald Trump has embraced the title of 'crypto president', with his administration pushing for looser restrictions on the industry. An executive order signed last week allows crypto assets to be included in 401(k) retirement accounts a move that could open the market to millions of new investors.
The U.S. has also passed new stablecoin regulations and overhauled securities rules to accommodate digital assets, marking a significant shift in the country’s approach to the sector. These developments have boosted confidence among asset managers such as BlackRock and Fidelity, which operate crypto exchange-traded funds (ETFs).
The broader crypto market has rallied alongside Bitcoin, with total market capitalization soaring to $4.18 trillion, up from about $2.5 trillion in November 2024, when Trump won the U.S. presidential election. The rally has persisted despite concerns over the administration’s tariff policies, which have roiled other asset classes.
While crypto’s entry into retirement savings represents a major step toward mainstream adoption, experts warn of risks. Digital assets remain far more volatile than traditional investments such as stocks and bonds, making them a potentially risky addition to long-term portfolios.
Read More News :
