Bitcoin recorded a new all-time high on Thursday, supported by rising expectations for more accommodative monetary policies from the Federal Reserve, alongside momentum from recently announced financial reforms.
The largest digital asset in the world by market value rose by 0.9% to reach $124,002.49 during early Asian trading, surpassing its previous peak achieved in July. On the same day, the price of ether – the second-largest cryptocurrency – reached $4,780.04, the highest since late 2021.
Tony Sycamore, an analyst at IG, stated that Bitcoin's rise is driven by increased certainty regarding interest rate cuts from the Fed, continued institutional buying, and Trump's administration's steps to facilitate investment in digital assets. He added: 'Technically, a sustained breakthrough above the $125,000 level could push Bitcoin to $150,000.'
The price of Bitcoin has risen by about 32% since the beginning of 2025, benefiting from long-awaited regulatory gains for the sector following President Donald Trump's return to the White House. Trump had described himself as the 'Crypto President,' while his family took a series of actions in the sector over the past year.
Last week, Trump issued an executive order paving the way for allowing digital assets to be included in 401(k) retirement plans, in a move that highlights a more favorable regulatory environment in the United States.
During 2025, the cryptocurrency sector achieved several regulatory victories in the United States, including the enactment of regulations specific to stablecoins, and the U.S. Securities and Exchange Commission's move to reshape rules to align with the digital asset class.
The rise of Bitcoin has also ignited a broader increase in the digital asset market over the past months, surpassing the impacts of the wide-ranging tariff policies adopted by Trump.
According to CoinMarketCap data, the total market capitalization of the cryptocurrency sector rose to over $4.18 trillion, compared to about $2.5 trillion in November 2024 when Trump won the U.S. presidential election.
The latest steps to support the adoption of cryptocurrencies in the United States come via an executive order issued last Thursday, aimed at facilitating access to these assets within 401(k) retirement plans. This could provide a boost to asset management companies like BlackRock and Fidelity, which manage exchange-traded funds (ETFs) for cryptocurrencies.
Nonetheless, introducing cryptocurrencies into retirement savings is not without risks, as these assets are characterized by much higher volatility compared to stocks and bonds, which asset managers have traditionally relied on in such accounts.
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