Bitcoin surged to a fresh all-time high on Friday, briefly surpassing $118,000, driven by massive inflows into spot Bitcoin ETFs and growing support for cryptocurrency regulation in Washington, influenced by the pro-crypto stance of U.S. President Donald Trump.
Data from CoinMarketCap showed Bitcoin reaching a peak of $118,856 early Friday before retreating to around $117,300 by midday Eastern Time. Despite the dip, it still remains more than $7,400 above last month’s levels and has more than doubled in value compared to a year ago.
Spot Bitcoin exchange-traded funds (ETFs), launched last year, have significantly broadened access to crypto investing. Recently, these ETFs have seen record-breaking inflows. Combined with a weaker U.S. dollar and the Trump administration’s crypto-friendly tone, Bitcoin has gained major traction in recent months.
In a landmark move, the U.S. Senate recently passed the GENIUS Act — legislation aimed at regulating stablecoins, a type of cryptocurrency generally pegged to the U.S. dollar. The bill’s full name — Guiding and Establishing National Innovation for U.S. Stablecoins — reflects the government’s intent to build a regulatory framework that protects consumers while fostering innovation.
The House of Representatives is expected to review the bill next week, a key part of ongoing efforts by lawmakers to strengthen the United States’ position in the global crypto landscape.
This legislative momentum follows a 2024 election season where the crypto industry ranked among the country’s top political contributors. Once a skeptic, Trump has emerged as a vocal supporter of cryptocurrency, making it a major theme of his campaign and expanding his personal stake in the space. His media company, Trump Media & Technology Group, recently filed with the SEC to launch a new product — the “Crypto Blue Chip ETF” — planned for later this year.
Bitcoin’s rally also coincides with broader economic uncertainty, particularly from the market’s reaction to Trump’s reintroduced and often unpredictable tariffs against major trading partners.
In a research note Friday, Citi analysts observed that Bitcoin has rebounded in sync with broader macro trends, especially in response to recent tariff news. They pointed out that overall, the Trump administration has had a positive impact on Bitcoin through both regulatory shifts and increased investment in spot ETFs.
Supporters of Bitcoin continue to call it a form of “digital gold” that could serve as a hedge against economic volatility. Still, many experts remain cautious about that comparison, citing past evidence that Bitcoin’s price remains highly susceptible to broader market forces.
Earlier this year, for example, Bitcoin dropped below $75,000 in April during a market-wide selloff sparked by Trump’s bold “Liberation Day” tariff plans — marking its lowest point since before the 2024 election.
While Bitcoin has since rebounded dramatically, investors are being urged to keep in mind its high volatility and speculative nature. For all its gains, Bitcoin has a long history of sudden price drops — a reminder that just as fortunes can grow fast in crypto, they can also vanish just as quickly.
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