Bitcoin News Today: Bitcoin hits $116,500 as Trump policy and Fed cut expectations boost crypto rally

Generated by AI AgentCoin World
Thursday, Aug 7, 2025 1:14 pm ET1min read
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Aime RobotAime Summary

- Bitcoin surged to $116,500 on August 7, 2025, as Trump's potential crypto-friendly executive order and Fed rate-cut expectations fueled market optimism.

- Altcoins like Pudgy Penguins and Ethena rose alongside Bitcoin, supported by institutional accumulation of ADA/RTX and ETF inflows amid declining token supply.

- Technical indicators show Bitcoin forming a bullish flag pattern near $112,000, with Ethereum stabilizing above $3,600 as macroeconomic and regulatory factors drive accumulation.

Crypto markets experienced a significant rally on August 7, 2025, as

Bitcoin
(BTC) climbed to a weekly high of $116,500, while altcoins broadly advanced. The upward momentum was driven by anticipation of a major executive order from U.S. President Donald Trump, which is expected to expand access to alternative assets, including cryptocurrencies, for retirement funds such as 401(k)s. This development is seen as potentially unlocking billions in capital for the sector and encouraging institutional participation amid declining on-exchange supply of major tokens and rising demand through ETF inflows [1].

The crypto rally was further supported by growing expectations of a Federal Reserve rate cut in September. Prominent Federal Reserve officials, including Neel Kashkari, Lisa Cook, and Susan Collins, expressed openness to easing monetary policy, joining earlier advocates like Christopher Waller and Michele Bowman. These signals were reinforced by market data from Polymarket and CME, which showed a notable shift in odds toward rate cuts following the release of July nonfarm payroll data. The report indicated the economy added just 73,000 new jobs and the unemployment rate rose to 4.2% [1].

Technical analysis also provided a bullish outlook for Bitcoin, which formed a flag pattern on the daily chart and found support near $112,000—its previous all-time high and the 50-day Exponential Moving Average. These chart patterns suggest the potential for Bitcoin to reach new record highs, which would likely trigger further gains across the broader crypto market [1]. Altcoins such as Pudgy Penguins, Virtuals Protocol, Ethena, and Pendle were among the top performers, reflecting strong broad-based market strength [1].

Institutional activity continued to highlight the growing interest in the crypto market, with major investors accumulating assets such as

ADA
and RTX in advance of a widely anticipated upturn. This trend aligns with broader macroeconomic optimism and increasing engagement from large-scale capital holders [5]. Meanwhile,
Ethereum
(ETH) maintained its price above $3,600, supported by rising daily transaction volumes and strong stablecoin inflows [6].

The confluence of favorable macroeconomic conditions, regulatory developments, and technical strength suggests that the crypto market remains in a phase of accumulation and growth [1].

Source:

[1] Crypto rally: Why are Bitcoin and altcoins going up today? ... (https://crypto.news/crypto-rally-why-are-bitcoin-and-altcoins-going-up-today-07-08/)

[5] Big Investors Accumulate ADA and RTX Ahead of ... (https://www.ainvest.com/news/big-investors-accumulate-ada-rtx-expected-2025-crypto-rally-2508/)

[6] ETH holds $3.6K as Ethereum daily transactions near ATH (https://crypto.news/eth-price-ethereum-transactions-all-time-high-2025/)