Bitcoin Market Nears $3.4 Trillion as Trump's Influence Drives Price to $112,000

Bitcoin and cryptocurrencies have grown into a $3.4 trillion market this year, with U.S. President Donald Trump's influence driving the bitcoin price. The bitcoin price is nearing its all-time high of $112,000 per bitcoin, recovering from April lows of $75,000. Markets are anticipating a significant shift from the Federal Reserve, which is under pressure to cut interest rates and release the "trillions and trillions" of dollars currently on the sidelines.

Traders are closely watching July, as David Sacks, Trump's crypto czar, has predicted it will be a "big" month. Sacks expects a bill signing for the stablecoin Genius Act and the crypto market structure Clarity Act to be sent to the Senate. The Trump administration has expedited crypto legislation, aiming to pass bills that would legitimize dollar-pegged stablecoins and clarify regulatory oversight for the bitcoin and crypto market.

Earlier this month, the Senate passed the Genius Act, which establishes a regulatory framework for stablecoins. Trump has expressed support for the Genius Act, anticipating it will lead to "massive" crypto investment if passed by the House of Representatives. Trump's endorsement of bitcoin and cryptocurrencies has grown since his return to the White House in January. Last week, Trump stated that bitcoin is relieving pressure on the dollar and is beneficial for the country, describing it as "amazing."

Federal Reserve Chairman Jerome Powell is under increasing pressure to lower interest rates, as investor Chamath Palihapitiya noted during an episode of the All In Podcast. Palihapitiya highlighted the significant amount of money in money market funds, suggesting that "trillions and trillions of dollars of dry powder on the sidelines" will need to find a home. Bitcoin and crypto analysts are optimistic about the market's outlook, with policy, macro, and funding factors aligning favorably.

Crypto research strategist Matt Mena of 21Shares described the setup for bitcoin as compelling. He predicted that a clean break above $110,000 could trigger a rapid move to $120,000, bringing the summer target of $138,500 within reach. With favorable policy, macro, and flow conditions, bitcoin may be poised for a bullish end to the year, where a push toward $200,000 is becoming increasingly probable.