Bitcoin Surges to $120,000 on Trump Support and Policy Shifts

Bitcoin has surged past $120,000 per bitcoin for the first time, driven by a significant prediction made by the chief executive of Coinbase. This surge comes as traders anticipate that the support for bitcoin and crypto from U.S. president Donald Trump will open the "floodgates" for further growth. Trump's support for bitcoin and crypto has been a major factor in the bitcoin price surge since his return to the White House last year. This support has led to increased optimism among traders, who are betting on the potential for significant gains in the crypto market. As Tesla billionaire Elon Musk confirms a major bitcoin bombshell, the crypto market is poised for one of its biggest weeks ever. The confirmation from Musk has added to the excitement and anticipation in the market, with traders and investors closely watching for further developments. The U.S. House of Representatives is expected to vote on three bills related to crypto policy this week, which the crypto industry hopes will establish comprehensive rules for the sector. These bills include the Genius Act stablecoin bill, a crypto market structure bill, and an anti-central bank digital currency (CBDC) bill. Some changes have been made to the Senate’s stablecoin bill, including revised accounting requirements, a provision for commodity-backed stablecoins, and a language tweak that would require public non-financial companies to get approval from a review committee before they can issue a stablecoin, extended to private companies. The passage of Trump’s signature tax and spend bill, known as the Big Beautiful Bill (BBB), is expected to drive up risk assets like bitcoin. This massive fiscal stimulus package signals looser policy ahead, which has historically sparked sharp rallies in crypto as excess liquidity flowed into risk assets. According to Nick Forster, founder of onchain options trading platform Derive.xyz, the broader rate trajectory is clearly downward over the next 6-12 months. Lower rates make capital cheaper, driving more aggressive positioning in assets like bitcoin. While there’s only a 7% chance of a Fed rate cut at the next meeting, the overall trend is expected to be favorable for the crypto market.