Bitcoin hit a new record high on Friday, surpassing $118,000 for the first time as a flood of money continues to move into spot bitcoin ETFs, all while U.S. President Donald Trump’s crypto-friendly influence makes its way through Washington.
Data from CoinMarketCap shows that bitcoin climbed to a peak of $118,856 early Friday. Although it dipped slightly below $118,000 by the afternoon, it remained near its record, up roughly $8,000 higher than a month ago and more than twice its value compared to the same time last year, reports AP.
The launch of spot bitcoin ETFs last year made cryptocurrency investing more accessible, with analysts noting a surge in recent inflows. Additionally, a weaker U.S. dollar and the pro-crypto stance of Trump’s administration have contributed to bitcoin’s rise to record-breaking levels in recent months.
Last month, the Senate passed legislation that would regulate a form of cryptocurrency known as stablecoins, the first of what the industry hopes will be a wave of bills to bolster its legitimacy and reassure consumers.
Known as the GENIUS Act, the bill would establish guardrails and consumer protections for stablecoins, a type of cryptocurrency typically pegged to the U.S. dollar. The acronym stands for “Guiding and Establishing National Innovation for U.S. Stablecoins.” And next week, the House of Representatives will be considering this bill as part of Congress’ efforts to strengthen the country’s crypto position.
The rapid legislation comes on the heels of a 2024 campaign cycle in which the crypto industry ranked among the top political spenders in the country.
Trump, once a crypto skeptic, became a major promoter of the industry throughout his presidential run last year — and has since moved to expand his and his family’s own crypto empire even further. Earlier this week, Trump Media & Technology Group said it had filed paperwork with the Securities and Exchange Commission seeking approval to launch its “Crypto Blue Chip ETF” later this year.
Bitcoin’s rise also arrives amid a wider backdrop of economic uncertainty, notably the global turmoil spanning from Trump’s steep — and at times on-again, off again — tariffs imposed against key trading partners worldwide.
“Bitcoin has shown resilience this year rebounding in-line with its macro exposures following tariff announcements,” Citi analysts wrote in a Friday research insights. But again, they noted that the Trump administration “has been positive for Bitcoin” overall — and attributed bitcoin’s recent rally to overall changes to the outlook of U.S. regulation, as well as investments into spot ETFs.
Bitcoin’s backers have often argued that the asset is like a “digital gold” that can act as a hedge against volatility — but many have remained skeptical of that comparison. Larger market conditions have previously proven also to sway bitcoin’s price.
In April, amid a wider selloff following Trump’s sweeping “Liberation Day” tariff announcements, bitcoin briefly dipped below $75,000. That marked the cryptocurrency’s lowest price since before Trump’s Election Day victory in November.
Although bitcoin has made a strong recovery, investors should keep in mind that it remains a highly volatile and relatively young asset, known for dramatic price fluctuations. Simply put, history proves that gains in crypto can vanish just as quickly as they appear.
Bd-pratidin English/ ANI
