BTC Price – Bitcoin (BTC) soared to a record high of $122,000 on August 11, 2025, following President Donald Trump’s executive order allowing cryptocurrencies in 401(k) retirement accounts. This landmark policy shift, combined with expectations of Federal Reserve rate cuts, has fueled a surge in investor enthusiasm, pushing Bitcoin’s price to new heights.
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Trump’s Executive Order: A Game Changer
Signed on August 7, 2025, Trump’s executive order directs the Department of Labor to revise fiduciary guidelines, enabling Bitcoin and other digital assets in 401(k) plans. The order also tasks the SEC and Treasury Department with updating regulations to support this shift.
Analysts, including Galaxy Digital’s Mike Novogratz, predict that this could unlock a “monster pool of capital,” with estimates suggesting that a 5% allocation of the $8 trillion 401(k) market could inject $400 billion into BTC. This policy aligns with Trump’s vision to make the U.S. the “crypto capital of the world.”
Institutional and ETF Momentum
The rally is bolstered by strong institutional demand. U.S. spot Bitcoin ETFs now hold $150 billion in assets, nearing gold’s $198 billion. In 2025, institutions purchased 545,579 BTC, far outpacing the 97,082 BTC mined this year.
Companies like Nakamoto, set to acquire hundreds of millions in BTC post-merger, and Twenty One Capital, with 43,514 BTC, exemplify this trend. The influx of institutional capital has driven Bitcoin’s market cap to $2.3 trillion, with some analysts eyeing gold’s $23 trillion valuation as a long-term target.
Federal Reserve and Macro Tailwinds
Expectations of Federal Reserve rate cuts in September 2025, coupled with Trump’s nomination of Stephen Miran, a proponent of a weaker dollar, have created a favorable macro environment for Bitcoin. The global M2 money supply reached $55.5 trillion in July, supporting BTC’s appeal as a hedge against inflation.
Sean Farrell of Fundstrat notes that this “macro cocktail” of growth, controlled unemployment, and elevated inflation favors crypto allocation. These factors have contributed to Bitcoin’s 116% annual gain, outpacing the S&P 500’s 22%.
Market Reactions and Broader Crypto Gains
The Bitcoin rally has spilled over to other cryptocurrencies, with Ethereum touching 2021 levels after a 190% surge since April. Eric Trump’s X post on August 8, urging investors not to bet against BTC and ETH, reflects the bullish sentiment.
Options traders are positioning for further upside, with Deribit contracts targeting $140,000 to $150,000 by year-end. The positive funding rate for BTC futures indicates sustained demand for long positions.
Potential Risks and Future Outlook
Despite the euphoria, risks loom. Bitcoin’s price remains volatile, and some strategists warn of short-term frothiness. Regulatory uncertainties and potential trade tariffs could temper gains. However, Trump’s broader crypto push, including the Genius Act for stablecoins and the Clarity Act for market structure, signals long-term support. Analysts like Matt Mena of 21Shares project a Bitcoin price of $138,500 by summer’s end, with $200,000 a growing possibility if policy and macro trends align.
Bitcoin’s surge past $120,000 marks a pivotal moment, driven by Trump’s pro-crypto policies and institutional fervor. As regulatory and economic tailwinds converge, BTC is poised for further gains, though investors must navigate its inherent volatility.
