The world’s largest crypto asset, Bitcoin, reached a record high on Thursday as rising expectations for easier monetary policy from the Federal Reserve, along with support from recently announced financial reforms, contributed to the momentum.
On Thursday, Bitcoin increased by 0.9%, reaching $124,002.49 in early Asian trading, exceeding its previous peak in July. The second-largest crypto token, ether, climbed to $4,780.04, the highest level since late 2021, according to a report by Reuters.
What is driving the rally?
Bitcoin’s rally is driven by growing confidence in Fed rate cuts, ongoing institutional investments, and efforts by the Trump administration to facilitate crypto investments assets, the report said citing IG market analyst Tony Sycamore.
Bitcoin has increased by nearly 32% in 2025, driven by important regulatory victories for the sector following President Donald Trump’s return to office. Trump has branded himself as the “crypto president,” and his family has engaged in several activities within the sector over the past year.
Reflecting a favourable regulatory environment for crypto assets in the US, an executive order issued last week paved the way for their inclusion in 401(k) retirement plans, driving a push for the asset.
In 2025, several rules for cryptocurrencies in the US were eased, including the approval of stablecoin regulations and the US securities regulator’s efforts to overhaul regulations to better accommodate the asset class.
Additionally, Bitcoin’s rise has also triggered a wider rally in the asset class over recent months, ignoring the disruptions caused by Trump’s extensive tariff policies.
Meanwhile, data from CoinMarketCap shows that the total market capitalisation of the crypto sector has surged past $4.18 trillion, rising from approximately $2.5 trillion in November 2024, the month of Trump’s US presidential election victory.
The latest executive order on including crypto assets in 401(k) retirement plans is anticipated to boost asset managers such as BlackRock and Fidelity, which manage crypto exchange-traded funds (ETFs).
Cryptocurrency’s move into retirement savings carries risks, given that this asset class usually shows much higher volatility than stocks and bonds, which asset managers have traditionally used for these accounts, the news agency noted.
