Bitcoin Reaches Record High on Institutional Investor Demand and Trump Administration Support

Bitcoin reached a record high of $116,781.10 on Friday, driven by demand from institutional investors and favorable policies from the Trump administration. The cryptocurrency has gained over 24% this year. Ether also surged, hitting a five-month high. The Trump administration has shown support for cryptocurrencies, including the establishment of a strategic reserve and the appointment of crypto-friendly officials.

Bitcoin reached an all-time high of $116,781.10 on Friday, July 2, 2025, driven by significant demand from institutional investors and favorable policies from the Trump administration. The cryptocurrency has gained over 24% year-to-date, according to Reuters [1].

The surge in Bitcoin's value can be attributed to several factors. First, the Trump administration has been notably supportive of cryptocurrencies. In March, President Donald Trump signed an executive order to establish a strategic reserve of cryptocurrencies, including Bitcoin. He has also appointed crypto-friendly individuals, such as Paul Atkins at the Securities and Exchange Commission (SEC) and David Sacks, the White House's artificial intelligence czar [1].

Additionally, Trump Media & Technology Group, run by the Trump family, is looking to launch an exchange-traded fund (ETF) that will invest in multiple crypto tokens, including Bitcoin, according to a recent SEC filing [2]. This move further underscores the administration's commitment to cryptocurrencies.

Ether, the world's second-largest cryptocurrency, also saw significant gains, surging more than 5% to reach a five-month high of $2,964.02 [1]. The increase in Ether's value is likely linked to the broader trend of institutional adoption and regulatory support for cryptocurrencies.

The shift in U.S. policy has had a profound impact on the global cryptocurrency market. According to Nigel Green, chief executive of wealth management company deVere Group, "Bitcoin is being pulled into the core of national economic thinking in the US – the world’s largest economy – and also corporate treasury policy and institutional portfolios. This isn’t hype. This is capital following political will" [2].

The U.S. Congress is also taking steps to further support the cryptocurrency industry. The "Crypto Week" from July 14 to 18 will see the introduction of pivotal bills, including the Clarity Act, the Anti-CBDC Surveillance State Act, and the Genius Act [2]. These legislative initiatives aim to provide regulatory clarity and foster institutional involvement in the cryptocurrency sector.

While risks remain, particularly if Congress introduces restrictive measures, the broader outlook for the cryptocurrency sector is positive. The trend of institutional adoption and regulatory support is likely to continue, driving further growth in the market.

References:
[1] https://finance.yahoo.com/news/bitcoin-hits-fresh-record-high-165724637.html
[2] https://www.thenationalnews.com/business/money/2025/07/10/bitcoin-crypto-investing-cryptocurrency/