Bitcoin surges past $118,000 for first time as Crypto momentum grows

Bitcoin reached a new record high yesterday (11 July), climbing above $118,000 for the first time as investor interest in cryptocurrency remains strong, fueled by growing inflows into spot bitcoin ETFs and pro-crypto sentiment from President Donald Trump.

Data from CoinMarketCap shows bitcoin peaked at $118,856 early Friday before dipping slightly below the $118,000 mark in the afternoon. Despite the minor decline, it remained near its record, up roughly $8,000 from a month ago and more than double its value from a year earlier.

The surge comes as spot bitcoin exchange-traded funds (ETFs), which launched last year, have brought broader access to crypto investing.

Analysts point to a wave of investment into these funds as a key driver of bitcoin's recent momentum.

A weakened US dollar and the crypto-supportive stance of Trump's administration have further helped push prices higher.

In a major development for crypto regulation, the US Senate recently passed the GENIUS Act — legislation aimed at regulating stablecoins, a type of cryptocurrency typically tied to the US dollar.

The bill, which stands for Guiding and Establishing National Innovation for US Stablecoins, sets out consumer protections and regulatory frameworks for the asset. The House is expected to take up the bill next week as part of a broader push to legitimise and regulate digital assets.

This rapid legislative action follows a 2024 election season in which the cryptocurrency industry emerged as one of the largest political donors in the US.

Once sceptical of digital currencies, Trump has since become a vocal supporter of the industry.

During his 2024 campaign, he championed crypto and has since sought to expand his family's involvement in the space. This week, Trump Media & Technology Group filed documents with the Securities and Exchange Commission for a new "Crypto Blue Chip ETF," expected to launch later this year.

Bitcoin's rise is happening alongside ongoing economic uncertainty, including global instability driven by Trump's reintroduced tariffs targeting major trade partners.

Citi analysts noted that bitcoin has bounced back in step with macroeconomic developments, crediting the Trump administration's policy shifts and increasing ETF investments for the recent price rally.

Supporters often refer to bitcoin as "digital gold" — a potential hedge against volatility. Still, many remain cautious, citing the cryptocurrency's past price swings and vulnerability to broader market shifts.

In April, bitcoin briefly dropped below $75,000 following a widespread market sell-off triggered by Trump's "Liberation Day" tariff announcement, marking its lowest point since before his 2024 election win.