Bitcoin surged to a fresh all-time high on Thursday, driven by rising expectations of easier monetary policy from the Federal Reserve and recent regulatory developments in the United States. The world’s largest cryptocurrency by market capitalization climbed as much as 0.9% to $124,002.49 during early trading in Asia, surpassing its previous peak recorded in July. The rally was not limited to Bitcoin alone; the second-largest crypto asset, Ether, also reached $4,780.04, marking its highest level since late 2021.
Analysts attribute Bitcoin’s recent gains to several factors. IG market analyst Tony Sycamore highlighted that the combination of potential Federal Reserve rate cuts, sustained institutional buying, and regulatory reforms under the Trump administration has strengthened investor confidence in the cryptocurrency market. He noted that a sustained break above $125,000 could potentially drive Bitcoin toward $150,000, signaling further upside for the asset class.
Bitcoin has seen a nearly 32% increase so far in 2025, fueled largely by long-awaited regulatory clarity in the United States. Following President Donald Trump’s return to the White House, the administration has taken steps to promote the crypto industry, with Trump branding himself the “crypto president.” His family has actively engaged in the sector over the past year, supporting measures aimed at easing restrictions on crypto investments.
The U.S. crypto sector has secured several regulatory wins this year, including the passage of stablecoin regulations and reforms by the Securities and Exchange Commission to accommodate digital assets. These developments have bolstered institutional participation in cryptocurrencies, contributing to a broader rally across the sector.
Data from CoinMarketCap indicates that the total market capitalization of cryptocurrencies has surged to over $4.18 trillion, up from roughly $2.5 trillion in November 2024, shortly after Trump won the presidential election.
Further boosting the market, a recent executive order facilitates the inclusion of cryptocurrencies in 401(k) retirement accounts. This policy could benefit asset managers such as BlackRock and Fidelity, which operate crypto exchange-traded funds (ETFs).
While this expansion into retirement savings offers growth opportunities, it also exposes investors to heightened volatility, as cryptocurrencies are significantly more unstable than traditional stocks and bonds. Overall, Bitcoin’s record-breaking rally reflects a convergence of monetary policy expectations, regulatory clarity, and institutional support, positioning the crypto market for continued momentum in the near term.
