Bitcoin Hits New Record as Fed Rate Cut Hopes and Trump’s Crypto Reforms Fuel Rally
Bitcoin reached a new all-time high on Thursday, driven by growing expectations of Federal Reserve interest rate cuts and fresh support from recent U.S. crypto reforms.
The world’s largest cryptocurrency by market capitalization rose 0.9% in early Asian trading to $124,002.49, surpassing its July peak. Ether, the second-largest crypto asset, climbed to $4,780.04 — its highest level since late 2021.
IG market analyst Tony Sycamore said Bitcoin’s surge is fueled by rising certainty of Fed rate cuts, strong institutional buying, and moves by the Trump administration to expand crypto investment. “A sustained break above $125,000 could propel BTC towards $150,000,” he noted.
Bitcoin has already gained nearly 32% in 2025, boosted by regulatory wins since President Donald Trump’s return to the White House. Trump, who calls himself the “crypto president,” has supported policies favoring digital assets.
A major driver was last week’s executive order allowing cryptocurrencies in 401(k) retirement accounts — a landmark step in U.S. crypto adoption. This policy shift benefits major asset managers like BlackRock and Fidelity, both operating crypto ETFs.
Throughout 2025, the U.S. has passed key crypto-friendly laws, including stablecoin regulations and overhauls by the Securities and Exchange Commission to integrate digital assets into the broader financial system.
The crypto market’s total value has surged to over $4.18 trillion, up from $2.5 trillion in November 2024 when Trump won the presidential election. Bitcoin’s rally has also lifted the wider crypto sector, shrugging off concerns over Trump’s tariff policies.
While crypto in retirement savings presents opportunities, it also brings risks. Digital assets remain far more volatile than traditional investments like stocks and bonds.
