Updated Jul 12, 2025 14:05 IST
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Bitcoin Price: Crypto King Soars Past $118K Threshold – Key Factors
Bitcoin achieved a new record peak, exceeding $118,000 for the first time this Friday, fueled by continued
capital inflow into spot bitcoin ETFs and the supportive regulatory environment influenced by former President
Donald Trump.
Bitcoin Reaches Unprecedented Valuation
Data sourced from CoinMarketCap indicates Bitcoin’s price surged to $118,856 in early trading hours on Friday.
Subsequently, it adjusted to approximately $117,300 around 12:30 PM ET, still marking an increase of over $7,400
compared to its valuation a month prior, and more than doubling its price compared to this time last year, according
to reports from PTI.
Spot Bitcoin ETFs Catalyze Investment Boom
The introduction of spot bitcoin ETFs last year has broadened access to cryptocurrency investments, with analysts
observing record inflows recently. Furthermore, a weaker U.S. dollar and the perceived pro-crypto stance of the
Trump administration have contributed to Bitcoin’s rise to historic levels in recent months.
Policies Supportive of Digital Assets Drive Market Growth
Senate Approves Stablecoin Regulatory Framework
The Senate recently approved legislation aimed at regulating stablecoins, a type of cryptocurrency, in what the
industry hopes will be the first of many legislative efforts designed to enhance its legitimacy and reassure users.
The GENIUS Act: Stabilizing Digital Currencies
This legislation, titled the GENIUS Act, seeks to establish regulatory standards and safeguards for stablecoins,
which are digital currencies generally pegged to the U.S. dollar. The acronym represents “Guiding and Establishing
National Innovation for US Stablecoins.” The House of Representatives is scheduled to consider the bill next week, as
part of broader Congressional initiatives to strengthen the country’s position in the digital asset space.
The Increasing Political Clout of the Cryptocurrency Sector
This accelerated legislative activity follows the 2024 election cycle, where the cryptocurrency industry was ranked as
one of the leading political spenders nationwide.
From Skeptic to Advocate: Trump’s Transformation on Crypto
Formerly a crypto-skeptic, Donald Trump emerged as a prominent advocate for the sector during his presidential campaign
last year, and has since taken steps to further develop his and his family’s crypto-related business ventures. Earlier
this week, Trump Media & Technology Group announced that they had filed documentation with the Securities and Exchange
Commission for the approval to launch their “Crypto Blue Chip ETF” later this year.
Economic Instability and Bitcoin’s Performance
Bitcoin’s ascent also unfolds against a backdrop of broader economic uncertainties, notably the global economic
disruptions caused by Trump’s implemented, and sometimes fluctuating, tariffs against major global trade partners.
Citi Analysts Highlight Regulatory Optimism
“Bitcoin has demonstrated resilience this year, rebounding alongside its macro exposures in response to tariff
announcements,” analysts at Citi stated in their Friday research briefing.
However, they emphasized that the Trump administration “has generally benefited Bitcoin,” and attributed Bitcoin’s recent
rally to the improving outlook on U.S. regulation and the increased investment in spot ETFs.
Bitcoin: A Digital Store of Value or Overhyped Asset?
Proponents of Bitcoin often describe it as “digital gold,” asserting its ability to serve as a hedge against market
volatility. However, many remain skeptical about this comparison. Past events have demonstrated that broader market
trends can significantly impact Bitcoin’s price.
Investors Should Be Aware of Ongoing Volatility
fell below $75,000. This was the cryptocurrency’s lowest valuation since prior to Trump’s Election Day victory in
November.
While Bitcoin has since recovered substantially, it’s essential for investors to recognize that it remains a highly
volatile and relatively new asset class, having experienced significant price fluctuations in the past. Investors
should be aware that the potential for quick profits is matched by the possibility of significant losses.
(Disclaimer: This article is intended solely for informational purposes and should not be construed as
financial advice. ET NOW DIGITAL encourages its readers/audience to consult with qualified financial advisors
before making any investment decisions.)
(With contributions from PTI, AP)
End of article