Bitcoin has climbed to an all-time high above $118,000 on Saturday, driven by an increased risk appetite, strong institutional demand and the Trump administration's crypto-friendly policies.
The world's largest cryptocurrency has so far gained more than 24 per cent this year. It was trading at $118,002 at 1.22pm on Saturday, according to CoinMarketCap.
The Trump administration's crypto-friendly policies have bolstered digital assets overall.
For instance, Trump Media & Technology Group, run by the US President Donald Trump's family, is looking to launch an exchange-traded fund (ETF) that will invest in several crypto tokens, including Bitcoin, Ether, Solana and Ripple, according to a filing with the US markets regulator on Tuesday.
IG analyst Tony Sycamore said there is scope for Bitcoin to make further gains towards $120,000.
“The shift is clear and aggressive,” said Nigel Green, chief executive of wealth management company deVere Group.
“Bitcoin is being pulled into the core of national economic thinking in the US – the world’s largest economy – and also corporate treasury policy and institutional portfolios. This isn’t hype. This is capital following political will.
“When a sitting administration is weighing Bitcoin as part of sovereign reserves, that reshapes the global risk framework. It doesn’t just legitimise Bitcoin, it forces others – institutions and governments alike – to act.”
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Bitcoin had a stellar 2024, more than doubling from $44,000 to top $100,000 for the first time on the back of Mr Trump's White House win and the launch of Bitcoin spot ETFs in January last year.
The Republican President won support from the crypto industry in his 2024 election bid, and he has quickly moved to back their policy priorities. Under his Democratic predecessor, Joe Biden, regulators cracked down on the industry.
Mr Trump was once a crypto sceptic. In his first term, he derided Bitcoin and its peers as “not money”, “based on thin air” and something that “can facilitate unlawful behaviour, including drug trade and other illegal activity”. He also described it a scam after he left office in 2021. However, in the months before and after his election this time around, he said he was considering an executive order designating cryptocurrencies as a “national priority”.
In March, Mr Trump announced the names of five digital assets he expects to include in a new US crypto strategic reserve, surging the market value of each. Mr Trump said on social media that his January executive order on digital assets would create a stockpile of currencies including Bitcoin, Ether, Ripple, Solana and Cardano.
“Strong ETF inflows and a solid macro backdrop have helped drive market momentum, but perhaps the most crucial shift is who’s buying. Institutional adoption is growing, and this is the first real bull market where institutional participation is front and centre,” according to Josh Gilbert, market analyst at trading platform eToro.
“Publicly traded companies are now adopting Bitcoin as part of their treasury strategy, with some making multibillion-dollar allocations. At the same time, retirement funds and sovereign wealth funds are starting to gain exposure through ETFs, adding to the wave of demand chasing a fixed supply.”
He said that retail adoption of Bitcoin is “only getting started”. Bitcoin as an asset in an investment portfolio is still in its infancy, and that creates a huge opportunity over the next decade, Mr Gilbert projected.
Meanwhile, Tesla founder Elon Musk’s newly formed America Party has pushed Bitcoin further into the national conversation. In his Independence Day speech, Mr Musk positioned Bitcoin as the foundation of economic resilience.
“Musk is giving Bitcoin further ideological weight and policy relevance,” Mr Green said. “That moves markets. His reach is unmatched.”
At the regulatory level, the Securities and Exchange Commission has softened its stance. Several enforcement actions have been withdrawn.
Mr Green said the “era of blanket resistance” appears to be over. “Regulatory friction held back institutional involvement for years. Now that it’s easing, we’re seeing fresh inflows from asset managers who were waiting for exactly this moment,” he added.
Corporates are moving aggressively. MicroStrategy added $2 billion in Bitcoin in June, pushing its total above 300,000 BTC. Seventeen publicly listed companies disclosed Bitcoin holdings in recent filings.
Sovereign institutions are advancing, too. Pakistan has begun holding state-mined Bitcoin through its central bank. The Czech National Bank is reviewing Bitcoin for potential inclusion in foreign reserves.
Jesse Jarvis, chief executive of digital assets market data provider Kaiko, cited how the US Congress will host “Crypto Week” from July 14 to 18, in “a legislative push that could redefine the regulatory architecture for digital assets”.
Politicians are set to debate three pivotal bills, the Clarity Act, which seeks to delineate oversight between the SEC and the Commodity Futures Trading Commission; the Anti-CBDC Surveillance State Act, aimed at prohibiting a retail central bank digital currency; and the Genius Act, which proposes a federal framework for stablecoin regulation, Mr Jarvis explained.
“Bitcoin continues to advance, approaching record levels in anticipation of policy clarity, with traders positioning ahead of legislative developments. A favourable outcome could accelerate institutional inflows,” he said.
“While risks remain, particularly if Congress introduces restrictive measures, the broader outlook is quite positive for the sector.”
