Bitcoin Hits $123,091.61 Amid Record ETF Inflows and Policy Debates

Bitcoin's price reached an unprecedented high of $123,091.61 early on July 14, 2025, marking a significant milestone in its 16-year history. This surge was fueled by record inflows into exchange-traded funds (ETFs), investor optimism, and growing institutional interest. The rally comes at a critical juncture as Washington, D.C., hosts "Crypto Week," a series of policy hearings, roundtables, and advocacy events focused on the digital asset economy.

The price of Bitcoin has surged by more than 30% since January, recovering from an April low of just above $75,000. This rebound has been bolstered by substantial inflows into Bitcoin ETFs and the anticipation of pro-crypto legislation in Congress. The total crypto market capitalization now stands at approximately $3.8 trillion, with other top cryptocurrencies such as ETH, Sol, and XRP also posting gains.

On Thursday, July 11, 2025, Bitcoin ETFs saw $1.18 billion in net inflows, the largest single-day total of the year. Funds such as BlackRock’s iShares Bitcoin Trust and Fidelity’s Wise Origin Bitcoin ETF have been instrumental in driving mainstream access to the asset. The momentum in Bitcoin's price is also driven by policy discussions, including the Generational Economic National Innovation for U.S. Strategy, known as the GENIUS Act. This bipartisan bill introduces the first federal framework for regulating stablecoins and cleared the Senate Banking Committee last month.

The GENIUS Act defines payment stablecoins as digital assets that must be redeemable at a fixed value, such as one U.S. dollar. Issuers are required to back each stablecoin with an equal amount of approved reserve assets, including Treasury bills, insured bank deposits, or central bank reserves. These reserves can only be used for redemptions or specific collateralized transactions. Issuers must adhere to rules on capital, liquidity, and risk management but are exempt from traditional bank capital requirements. They must also provide clear redemption policies, disclose reserve holdings, and undergo third-party audits. Those with over $50 billion in circulation must submit annual audited financial statements.

The bill also bans interest payments on stablecoins and imposes strict anti-money-laundering and sanctions compliance, with restrictions on executives with financial crime convictions. Banks, credit unions, or qualified nonbanks can issue stablecoins. Issuers with over $10 billion must operate under federal oversight, while smaller nonbanks may opt for a state-based regime if it aligns with federal standards. The bill outlines rules for foreign stablecoins and allows their use if regulatory standards are met. Custodians must keep customer funds separate from their own, and banks can use blockchain to manage stablecoin services. In the event of bankruptcy, stablecoin holders are prioritized for repayment. The bill clarifies that payment stablecoins are not securities or commodities and prohibits misleading marketing or bundling. Senior federal officials must disclose stablecoin holdings above $5,000.

Bitcoin’s rally coincides with "Crypto Week" in Washington, where lawmakers are split between advancing pro-crypto legislation and spotlighting "blatant corruption" tied to the Trump administration’s digital asset involvement. Rep. French Hill, chairman of the House Financial Services Committee, stated, "We are taking historic steps to ensure the United States remains the world’s leader in innovation, and I look forward to ‘Crypto Week’ in the House." Among the events scheduled are a House Ways and Means hearing on crypto tax policy, a Dodd-Frank retrospective touching on decentralized finance, and ongoing closed-door meetings between Senate staff and industry stakeholders.

Democrats on the House Financial Services Committee have launched a coordinated effort labeled "Anti-Crypto Corruption Week," aimed at countering what they describe as "regulatory capture" and ethical lapses related to digital assets. Rep. Maxine Waters, D-Calif., is leading the Democratic campaign, which includes public statements, investigative memos, and proposed legislation. A key focus is President Donald Trump’s memecoin, the $TRUMP coin, launched in early 2025, which has been promoted by individuals associated with the Trump campaign and has drawn scrutiny over its financial and political implications.

President Donald Trump has aggressively embraced Bitcoin and digital assets during his second term. In March, he issued an executive order creating a "Strategic Bitcoin Reserve" and stated that he is "very positive and open-minded to cryptocurrency companies, and all things related to this new and burgeoning industry. Our country must be the leader in the field." The Trump administration’s recent actions, including the removal of key SEC staff focused on digital asset enforcement, have raised questions about whether regulatory safeguards are being scaled back. At the same time, the administration’s pro-crypto stance has been viewed by some in the industry as a potential catalyst for U.S. leadership in digital innovation. Still, the alignment presents a cultural tension, as Bitcoin promotes decentralization and resistance to centralized control, while the political branding surrounding Trump often emphasizes hierarchy, loyalty, and singular leadership.

Despite growing controversy, Bitcoin’s climb to $123,000 marks one of the fastest in its 16-year history. After reaching $100,000 in December and $110,000 by late May, it added another $13,000 in just 53 days. The rally follows a volatile first half of 2025, including a sharp April dip driven by regulatory uncertainty and rising Treasury yields. Renewed ETF inflows and clearer policy signals have since reignited momentum. This new high is more than a market milestone; it highlights Bitcoin’s expanding role in the financial system and intensifies the debate over how digital assets should be regulated. The rally has reinforced the view that Bitcoin is moving closer to mainstream financial acceptance.

Whether the GENIUS Act can provide lasting structure, or whether political infighting and memecoin speculation undercut trust, may become clearer in the weeks ahead. Bitcoin’s record-setting price arrives at a pivotal moment for U.S. crypto policy. As lawmakers debate comprehensive regulation and examine political connections to the industry, the market appears to be pricing in long-term legitimacy. What happens next in Washington could shape the future of Bitcoin and the broader digital asset economy.