Bitcoin hits fresh record as Fed easing bets add to tailwinds

Bitcoin surged to a new all-time high on Thursday, driven by growing expectations of U.S. Federal Reserve rate cuts and a wave of pro-crypto reforms introduced by the Trump administration.

The world’s largest cryptocurrency by market capitalization rose as much as 0.9% in early Asian trading, reaching \$124,002.49 and surpassing its previous peak from July. Meanwhile, ether, the second-largest token, climbed to \$4,780.04 — its highest level since late 2021.

According to IG market analyst Tony Sycamore, the rally has been fueled by a combination of policy momentum and market optimism. “Technically, a sustained break above \$125k could propel BTC toward \$150,000,” he noted.

Bitcoin has gained nearly 32% so far in 2025, buoyed by a favorable regulatory shift following Donald Trump’s return to the White House. The president, who has dubbed himself the “crypto president,” has taken a proactive stance on digital assets. His administration’s policies — including a recent executive order allowing crypto assets in 401(k) retirement accounts — have signaled a major shift in U.S. regulatory tone.

This marks a significant victory for the crypto sector, which has also seen the passage of stablecoin legislation and an overhaul of U.S. securities regulations to accommodate digital assets. These moves have sparked renewed institutional interest and broader adoption.

The overall cryptocurrency market has rallied alongside Bitcoin. Data from CoinMarketCap shows the sector’s total market capitalization has swelled to over \$4.18 trillion, up from around \$2.5 trillion in November 2024, when Trump secured his re-election.

The latest executive order is expected to benefit asset managers like BlackRock and Fidelity, both of which offer crypto exchange-traded funds (ETFs). However, analysts caution that including cryptocurrencies in retirement accounts brings new risks due to the asset class’s high volatility — especially when compared to traditional investments like stocks and bonds.

Despite concerns, the bullish momentum underscores a growing consensus that crypto is becoming a more entrenched part of the global financial system, backed by regulatory clarity and institutional support.