Bitcoin Surges 9% to New All-Time High of $118,800

Bitcoin (BTC-USD) reached a new all-time high on Friday, surpassing $118,000 as bullish sentiment swept through the market for risk assets. This surge in Bitcoin's price coincided with a significant rise in the valuation of AI giant Nvidia, which reached $4 trillion, underscoring the strong correlation between cryptocurrencies and technology stocks. The tech-heavy Nasdaq Composite hit a fresh record on Wednesday, and the S&P 500 was on track to follow suit on Thursday.

The rally in Bitcoin's price has been driven by sustained structural inflows from institutional investors, as well as increased participation from corporations. Companies such as Strategy and GameStop have continued to add Bitcoin to their balance sheets, and Trump Media & Technology Group recently filed for approval to launch a “Crypto Blue Chip ETF,” which would allocate about 70% of its holdings to Bitcoin. This institutional interest has contributed to Bitcoin's price stability over the past two months, during which it traded within a tight $10,000 range, an unusually stable period given its historical volatility.

The timing of Bitcoin's breakout is also significant as it comes just days before Congress is set to begin its highly anticipated "Crypto Week" on July 14. During this week, lawmakers will debate a series of bills that could shape the regulatory framework for the cryptocurrency industry. A favorable outcome from these debates could accelerate institutional inflows into Bitcoin, reinforcing its role as a macro asset and strengthening confidence in compliant crypto platforms. One of the key regulations up for consideration is the GENIUS Act, which proposes a federal framework for stablecoins.

The surge in Bitcoin's price has also been fueled by favorable policies from the Trump administration, including the establishment of a strategic Bitcoin reserve and a broader digital asset stockpile. These policies have contributed to a roughly 21% increase in Bitcoin's price year to date. The rally has been further supported by the increasing mainstream acceptance of Bitcoin, as exemplified by its historic rise from a $3 mention on television to trading above $117,000.

Bitcoin's price momentum has put the cryptocurrency on track for further gains, with some analysts predicting a 14% rally by year-end. The cryptocurrency has rallied massively over the past seven days, posting an impressive price gain of nearly 9% after climbing from around $108,300 to almost $118,800. This surge has been driven by ETF inflows, institutional demand, and favorable U.S. regulation, all of which have contributed to bullish momentum and rising adoption.