The price of Bitcoin surged past the $118,000 mark on Friday morning to reach a new record high, with many other digital assets also climbing.
Bitcoin (BTC) has reached a new all-time high price after surging more than 6% on Friday morning. The leading cryptocurrency moved past $118,000 for the first time, climbing to $118,856.47 before slipping back slightly.
It signals an incredible rise for the world’s most popular digital asset, which was trading below $80,000 in April. Bitcoin’s market cap has moved past $2.3 trillion, placing it above global tech giants like Google and Meta.
Aside from Bitcoin’s new record price, the wider crypto market also posted big gains. Notable altcoins including Ethereum (ETH), Solana (SOL) and Dogecoin (DOGE) all rallied in price by more than 7% on Friday.
The new record puts bitcoin’s market cap above $2.3 trillion, ranking it above tech giants like Alphabet (Google) and Meta. It has also overtaken silver, but remains a long way behind gold’s estimated market cap of $22 trillion.
How has Bitcoin reached a new record high price?
Unlike many previous bull runs, Bitcoin’s latest upward rally appears to be fuelled by institutional capital inflows and a more supportive policy environment. In addition, strong buying momentum has played an important role. Large-scale investors have been leading the charge rather than retail traders.
Bitcoin’s latest price rise could signify a more measured upward trend, rather than simply being driven by short-term speculation. So far, the rally is not showing any signs of excessive leverage among individual investors. Funding rates have experienced a modest rise, while open interest in Bitcoin is only gradually increasing.
Are Trump and Bitcoin a match made in heaven?
The record-breaking rally began shortly after Donald Trump’s ”Liberation Day” announcement on 2 April. This disrupted traditional markets and led investors and institutions to turn to assets like Bitcoin to protect against economic instability
Along with capital flows, an improved regulatory environment and favourable political conditions have helped sustain Bitcoin’s current outlook. Once a sceptic, President Trump has since become generally supportive of crypto and other digital assets.
Recent reports have suggested that the US administration is preparing a detailed policy paper on Bitcoin and digital assets. There are rumours that the paper could explore the possibility of a national Bitcoin reserve.
Moving further into July, seasonal patterns and ongoing optimism around the approval of a Bitcoin ETF could offer support to price momentum. The US House of Representatives plans to advance crypto-related legislation during ‘Crypto Week’ starting on 14 July. The result of this could mean that Bitcoin’s current upward trend may well continue.
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