Bitcoin News Today: Bitcoin Surges Past $118000 as U.S. Launches Strategic Reserve

Bitcoin surged past $118,000 in early July 2025 as the U.S. announced plans to establish a strategic Bitcoin reserve, marking a pivotal shift toward institutional adoption of the cryptocurrency [1]. The move, part of broader pro-crypto policies under the Trump administration, has intensified market speculation about the cryptocurrency’s role as a strategic asset. The initiative aims to solidify U.S. leadership in crypto innovation by stabilizing investor confidence through regulatory clarity and government-backed reserves. Analysts suggest that such a reserve could serve as a benchmark for digital assets, encouraging institutional participation and broadening Bitcoin’s appeal as a store of value [1].

The price milestone was preceded by the U.S. government’s release of a national crypto policy framework, which includes a formal plan for managing the Bitcoin reserve. This policy is expected to outline guidelines for treating Bitcoin as a reserve asset, akin to gold or foreign currencies, though details remain under development. The reserve’s establishment aligns with historical trends showing positive Bitcoin returns in July, reinforcing the cryptocurrency’s alignment with institutional and policy-driven market dynamics [1].

Technical analysts highlight bullish patterns near the $118,000 threshold, noting a “bullish flag” or “pennant” consolidation suggesting potential for further gains [2]. On-chain data further supports this optimism, with Bitcoin’s realized capitalization exceeding $1 trillion—a metric reflecting sustained demand despite a $9 billion BTC sale by a Satoshi-era whale that briefly triggered volatility [3]. Institutional investors and hedge funds have increasingly allocated capital to Bitcoin, viewing it as a hedge against macroeconomic uncertainties amid the Federal Reserve’s evolving policy stance.

The U.S. strategy has sparked global debates about the implications for financial systems. Critics and proponents agree that the reserve could redefine central banking approaches to digital assets, though execution details remain undisclosed. Market participants are closely monitoring upcoming Fed rate decisions and the finalization of the national crypto policy, as these will shape Bitcoin’s trajectory in the short term [4].

Challenges persist, however. Sustained momentum will depend on regulatory clarity and the pace of institutional adoption. While technical indicators favor continuation, short-term volatility is expected as traders adjust to new information. The $118,000 level has historically acted as a psychological barrier, and its resilience will be critical in determining whether this surge marks a sustained bull market or a temporary spike driven by speculation [2].

The U.S. initiative reflects a global trend legitimizing cryptocurrencies as critical asset classes. By aligning policy with market realities, the government aims to foster innovation while mitigating risks. As the reserve strategy takes shape, its success will hinge on execution, with implications for Bitcoin’s long-term role in global finance.

Sources:

[1] [Bitcoin News Today: Bitcoin Surges Past $118000 as U.S. ...](https://www.ainvest.com/news/bitcoin-news-today-bitcoin-surges-118-000-launches-strategic-reserve-initiative-2507/)

[2] [Bitcoin Trade Ideas — CRYPTO:BTCUSD](https://in.tradingview.com/symbols/BTCUSD/ideas/?exchange=CRYPTO)

[3] [CoinDesk: Bitcoin, Ethereum, XRP, Crypto News and Price Data](https://www.coindesk.com/)

[4] [Cooling markets as Fed rate decision and crypto report ...](https://discover.luno.com/daily-briefing/)