Bitcoin News Today: Bitcoin Surges to $118,000 as U.S. Launches National Reserve and Pro-Crypto Policies

Bitcoin surged to $118,000 in July 2025, driven by the U.S. government’s establishment of a National Bitcoin Reserve and pro-crypto policy initiatives under the Trump administration. The strategic reserve, launched on July 23, 2025, marked a pivotal shift in institutional adoption of digital assets, with the U.S. recognizing Bitcoin as a strategic financial resource. This move, coupled with regulatory clarity and increased liquidity, triggered a rapid price escalation, reflecting growing institutional confidence and speculative momentum [1].

The U.S. National Reserve initiative has amplified trading volumes and liquidity, reinforcing Bitcoin’s status as a store of value and inflation hedge. Analysts note that the price surge aligns with historical trends showing positive Bitcoin returns in July, while policy-driven market impacts have deepened institutional participation. The reserve’s creation also underscores a departure from traditional monetary frameworks, positioning the U.S. as a leader in cryptocurrency innovation [1].

Market dynamics have further solidified Bitcoin’s dominance. On July 25, 2025, the asset reached a $1 trillion realized cap milestone, even as a $9 billion BTC sale by a Satoshi-era whale temporarily tested price stability. Despite short-term volatility—such as a July 12 dip below $118,000 amid a $731 million liquidation event—Bitcoin has maintained strong support above its peak, fueled by sustained institutional buying and speculative demand [6]. Technical analysts highlight bullish patterns near $118,000, suggesting potential for further upward momentum, though caution is advised due to market volatility [3].

The Trump administration’s crypto-friendly policies, including the GENIUS Act to establish frameworks for stablecoins and digital assets, have reinforced Bitcoin’s legitimacy. This aligns with broader geopolitical strategies to position the U.S. as a financial innovation hub. However, challenges remain, including regulatory harmonization and market resilience amid macroeconomic uncertainties such as the upcoming Federal Reserve rate decision [5].

Bitcoin’s trajectory has drawn comparisons to its previous highs, including a brief breach of $120,000 on July 26, 2025. Institutional investments and favorable regulatory environments have accelerated its adoption among traditional financial actors. Yet, the market’s susceptibility to whale activity and liquidity shifts highlights ongoing risks for investors [7].

As the U.S. refines its national crypto strategy, the interplay between policy and market dynamics will likely dictate Bitcoin’s future. With the Fed’s rate decision and an upcoming crypto report expected to provide further clarity, stakeholders remain closely monitoring signals of sustained institutional adoption or regulatory constraints.

Sources:

[1] [Bitcoin News Today: Bitcoin Surges Past $118,000 as U.S. Launches Strategic Reserve Initiative](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-surges-118-000-launches-strategic-reserve-initiative-2507/)

[2] [Cooling Markets as Fed Rate Decision and Crypto Report Approach](https://discover.luno.com/daily-briefing/)

[3] [Technical Patterns Suggesting Continuation](https://in.tradingview.com/symbols/BTCUSD/ideas/?exchange=CRYPTO)

[4] [Bitcoin Hits $1T Realized Cap](https://www.coindesk.com/)

[5] [GENIUS Act and Bitcoin Update](https://www.instagram.com/p/DMh_rAItRdb/)

[6] [Crypto Daily Pulse: July 25, 2025](https://blog.mevx.io/)

[7] [Bitcoin Reaches Record High Above $120,000](https://nequi.org/)