Bitcoin (BTC) surged to a fresh all-time high of $124,002 on Thursday, powered by growing optimism over U.S. Federal Reserve interest rate cuts and a wave of pro-crypto reforms from the Trump administration. The rally cements 2025 as a historic year for cryptocurrencies, with Ethereum (ETH) also touching $4,780, its strongest level since late 2021.
Why is Bitcoin Rising?
The crypto market is being lifted by a triple tailwind:
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Federal Reserve Easing – Traders are betting on upcoming Fed rate cuts, creating a risk-on environment that boosts digital assets.
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Institutional Buying – Big players like BlackRock and Fidelity continue to pump money into Bitcoin through ETFs and long-term holdings.
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Trump’s Pro-Crypto Policies – The U.S. president has branded himself the “crypto president”, rolling out reforms that make it easier to invest in digital assets.
According to Tony Sycamore, IG Markets analyst, if Bitcoin sustains a breakout above $125,000, it could accelerate toward $150,000 in the coming months.
Trump’s Executive Orders Transforming Crypto
A major executive order last week opened the door for Bitcoin and other cryptocurrencies in 401(k) retirement accounts—a landmark shift that could bring millions of American savers into crypto for the first time.
Other regulatory wins in 2025 include:
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Stablecoin legislation brings clarity to issuers and investors.
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SEC reforms are designed to integrate crypto into U.S. capital markets.
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A favorable tax environment encourages wider adoption.
These developments have driven a sharp increase in market confidence and institutional participation.
Crypto Market Cap Soars Past $4 Trillion
The global crypto market cap now stands at $4.18 trillion, up from $2.5 trillion in November 2024, when Trump won the election. The rally extends beyond Bitcoin and Ethereum, with altcoins like Solana, Dogecoin, and Toncoin also gaining momentum.
While optimism is high, experts caution that introducing crypto into retirement savings accounts carries risks. Unlike stocks or bonds, cryptocurrencies are highly volatile, which could expose long-term savers to sharp price swings.
With Fed rate cuts on the horizon, a regulatory green light from Washington, and institutional adoption accelerating, Bitcoin could be entering a new growth phase. If momentum holds, analysts say $150,000 BTC is within reach.
