Bitcoin hits record $124,000 thanks to Trump's crypto-friendly rule
What's the story
Bitcoin has hit a new all-time high, reaching $124,002.49 in early Asia trading on Thursday. The world's largest cryptocurrency by market capitalization surpassed its previous peak reached in July. The surge was fueled by expectations of an easier monetary policy from the Federal Reserve and recent financial reforms. Ethereum, the second-largest crypto token, also saw a jump to $4,780.04—the highest since late 2021.
Market dynamics
Factors behind Bitcoin's surge
The recent surge in Bitcoin's value can be attributed to a combination of factors. These include the growing certainty of Federal Reserve rate cuts, continued institutional buying, and the Trump administration's efforts to ease investment in crypto assets. IG market analyst Tony Sycamore noted that "technically, a sustained break above $125k could propel BTC to $150,000."
Regulatory changes
Trump's pro-crypto policies boost market
President Donald Trump's return to the White House has brought long-sought regulatory wins for the crypto sector. An executive order last week allowed crypto assets in 401(k) retirement accounts, showing an increasingly favorable regulatory environment in the US. The move could benefit asset managers like BlackRock and Fidelity that run crypto exchange-traded funds (ETFs).
Market growth
Cryptocurrency market capitalization soars
Bitcoin's surge has also triggered a wider rally in the asset class over the past few months. According to CoinMarketCap data, the overall market capitalization of the crypto sector has grown to over $4.18 trillion from about $2.5 trillion in November 2024 when Trump won the US presidential election.