Bitcoin hit a new record high on Thursday, supported by growing expectations for more accommodative monetary policy from the Federal Reserve, as well as momentum from recently announced financial reforms.
The world’s largest digital asset by market capitalization rose 0.9% to $124,002.49 during early Asian trading, surpassing its previous peak set in July. On the same day, Ether – the second-largest cryptocurrency – reached $4,780.04, its highest level since late 2021.
Tony Sycamore, an analyst at IG, said Bitcoin’s rally was driven by increased certainty over Fed rate cuts, ongoing institutional buying, and steps by the Trump administration to facilitate investment in digital assets. He added, “Technically, a sustained break above $125,000 could propel Bitcoin toward $150,000.”
Bitcoin has gained around 32% since the start of 2025, benefiting from long-awaited regulatory wins for the sector following Donald Trump’s return to the White House. Trump has described himself as the “crypto president,” while his family has made a series of moves in the industry over the past year.
Last week, Trump issued an executive order paving the way for digital assets to be included in 401(k) retirement plans, underscoring a more favorable regulatory climate in the US.
In 2025, the cryptocurrency sector scored several regulatory victories in the US, including the approval of stablecoin-specific rules and moves by the Securities and Exchange Commission to revise regulations to better align with the digital asset class.
Bitcoin’s rise has also fueled a broader rally in the digital asset market in recent months, offsetting the impact of Trump’s wide-ranging tariff policies.
According to CoinMarketCap data, the total market capitalization of the cryptocurrency sector climbed to over $4.18 trillion, up from about $2.5 trillion in November 2024 when Trump won the US presidential election.
The latest push to support cryptocurrency adoption in the US came via an executive order issued last Thursday, aimed at easing access to these assets within 401(k) plans. This could provide a boost for asset managers such as BlackRock and Fidelity, which run cryptocurrency exchange-traded funds (ETFs).
However, adding cryptocurrencies to retirement savings is not without risk, as these assets are far more volatile than stocks and bonds, which asset managers have traditionally relied upon in such accounts.
