Bitcoin surged to an all-time high on Friday, fueled by growing institutional investor interest and favourable cryptocurrency policies from the U.S. government under President Donald Trump. The world’s largest cryptocurrency reached a peak of $116,781.10 during the Asian session, marking a year-to-date gain of over 24%.
At last check, Bitcoin was trading around $116,563.11, cementing its position as the dominant digital asset in 2025.
What’s Driving Bitcoin’s New Record High?
According to Joshua Chu, co-chair of the Hong Kong Web3 Association, the latest rally is largely driven by large-scale institutional accumulation:
“Bitcoin’s new all-time high is being driven by relentless institutional accumulation—major players are scooping up supply and drying up liquidity on exchanges,” Chu explained.
Several financial firms and hedge funds have reportedly increased their Bitcoin holdings in recent months, adding pressure to already-tight crypto supply on public exchanges.
Trump Administration’s Crypto-Friendly Moves Boost Market Confidence
Another key factor behind Bitcoin’s rise is President Donald Trump’s pro-crypto policy stance. In March, Trump signed an executive order aimed at establishing a strategic reserve of cryptocurrencies for the United States.
The Trump administration has also appointed several crypto-positive figures, including:
- Paul Atkins as SEC Chair
- David Sacks as White House AI and Crypto Policy Czar
These appointments have further strengthened investor confidence in long-term regulatory support for cryptocurrencies in the U.S.
Trump Family Expanding Into Crypto Investments
Adding to the momentum, Trump Media & Technology Group is reportedly planning to launch a cryptocurrency exchange-traded fund (ETF).
According to an SEC filing from Tuesday, the ETF would invest in multiple crypto tokens, including Bitcoin, providing more exposure for traditional investors and driving additional demand.
Ethereum (ETH) Joins the Rally
Bitcoin isn’t the only cryptocurrency experiencing gains. Ether (ETH), the world’s second-largest cryptocurrency, also saw a sharp increase. ETH jumped nearly 5% to $2,956.82, after hitting a five-month high of $2,998.41 earlier in the session.
Ethereum’s rise is also linked to overall bullish sentiment in the crypto market, as well as increased interest in decentralised finance (DeFi) applications.
Bitcoin’s Outlook in 2025
With institutional investors continuing to accumulate Bitcoin and the U.S. government signalling friendlier policies toward digital assets, many analysts believe Bitcoin’s rally may not be over.
The combination of supply constraints, political support, and growing mainstream adoption suggests that Bitcoin’s all-time high of $116,781 could eventually be surpassed in the months ahead.
