Bitcoin surged to a historic high of $116,781.10 on Friday, marking a new chapter in its volatile journey, this time powered by institutional demand and an aggressive embrace by the Trump administration.
With year-to-date gains now exceeding 24%, the cryptocurrency’s rally appears to be more than a speculative leap.
Behind the price surge is a transition in the regulatory and financial sector. In March, President Donald Trump signed an executive order establishing a Strategic Bitcoin Reserve. For the first time, the U.S. federal government is formally holding Bitcoin as a sovereign reserve asset.
Unlike previous asset seizures, the administration has committed to holding, rather than liquidating, Bitcoin obtained through criminal or civil forfeiture. That decision instantly turned seized coins into a long-term store of value for the country, with clear echoes of gold-era policy.
Trump’s appointments of Paul Atkins as Chair of the Securities and Exchange Commission and David Sacks as the administration’s Digital Assets and AI lead sent a strong message to financial markets: Washington now sees cryptocurrency not as a threat, but as an asset class worth protecting and nurturing.
Both appointees have consistently pushed for regulatory clarity and crypto integration into the U.S. financial system.
“Bitcoin’s new all-time high is being driven by relentless institutional accumulation—major players are scooping up supply and drying up liquidity on exchanges,” said Joshua Chu, co-chair of the Hong Kong Web3 Association.
Trading activity across major U.S. platforms reinforces this view. Daily volumes on Coinbase and Kraken reached 2025 peaks this week, while open interest in Bitcoin derivatives on the Chicago Mercantile Exchange (CME) surged.
Some analysts are describing this phase as a “structural breakout” rather than a typical bull run, underlining a bigger market shift.
The Trump administration’s strategy isn’t limited to asset accumulation. On July 8, Trump Media & Technology Group submitted its third ETF filing of the year, a Crypto Blue Chip ETF that aims to invest in a basket of digital tokens, including Bitcoin, Ethereum, Solana, XRP, and Cronos.
If approved, the ETF will be custodied by Crypto.com and listed on NYSE Arca. The firm’s crypto ambitions don’t appear to be symbolic, this is part of a growing pivot into digital finance by the Trump family’s business interests.
A federal framework is also in motion. The Digital Asset Task Force, assembled earlier this year, is preparing a comprehensive report due July 22. The document is expected to cover everything from stablecoin regulation and crypto-bank partnerships to access protocols for decentralised finance platforms.
Ethereum followed Bitcoin’s trajectory, climbing nearly 5% to $2,956.82 after hitting a five-month high of $2,998.41. The rise in Ether is seen as a spillover effect of broader optimism about institutional capital flowing into crypto markets.
What sets this rally apart is its posture. Hedge funds, sovereign wealth managers, and pension boards are all reportedly increasing their exposure to digital assets. Their rationale? Bitcoin is now being seen as a hedge against monetary instability, not just a speculative asset.
With the United States now treating Bitcoin as a strategic reserve and pushing for regulated market access through ETFs, the asset has moved further into the mainstream financial system.
This new stance is rewriting the narrative for what a government’s relationship with cryptocurrency can be, and may trigger a geopolitical domino effect as other nations consider similar strategies.
