[Bitcoin, Cryptocurrency, Digital image. Image credit to Pixabay]

Bitcoin surged above $118,000 on July 11, reaching an unprecedented all-time high and a 26 % gain so far in 2025, driven by heavy institutional inflows and mounting optimism over U.S. crypto-friendly policy.

Massive Exchange-traded funds (ETF) inflows attracted a single-day inflow of $1.18 billion, bringing total ETF-related Bitcoin inflows in 2025 to approximately $51 billion.

A wave of liquidations added momentum to the surge, as a short squeeze impacted approximately 237,000 traders.

More than $1.01 billion worth of short positions were cleared.

At the corporate level, adoption accelerated rapidly. 

Data shows corporate Bitcoin holdings rose 23% in Q2 2025, now totaling 847,000 BTC with MicroStrategy accounting for over 70% and new entrants like GameStop and Figma entering the market.

On‑chain indicators suggest a changing tide: increased long‑term holder accumulation, growing transaction volume, and a gradual institutional embrace have reshaped Bitcoin's identity from speculative asset to strategic investment tool.

President Donald Trump has directly linked the crypto surge to his administration’s policies and escalated pressure on the Federal Reserve to cut rates and remove Chair Jerome Powell.

On June 30, Trump issued a handwritten note accusing  Powell of costing the country and called him out for “done a lousy job,” and urging his immediate resignation.

On July 8, he intensified demands, saying: “Powell’s termination cannot come fast enough!”

Treasury Secretary Scott Bessent later confirmed that the administration intends to replace Powell this fall, reinforcing expectations of a shift toward aggressive interest rate reductions. 

The Federal Reserve’s July 29-30 meeting is now in sharp focus. 

Minutes from the June session revealed only limited support for immediate rate cuts, with concerns rising due to inflation tied to Trump’s tariff policies.

Powell commented during the European Central Bank Forum that Trump’s trade tariffs have increased inflationary pressure, making early rate cuts less feasible.

Meanwhile, other policy developments have reinforced Bitcoin's narrative.

In March 2025, Trump signed an executive order establishing a Strategic Bitcoin Reserve, which added an estimated 200,000 BTC to government holdings.

The order also included Ethereum, Solana, and Ripple in a new digital asset stockpile, reflecting long‑term government endorsement.

 Combined with regulatory easing including paused Securities and Exchange Commission (SEC) enforcement this has further strengthened investor confidence.

Market experts such as Bitwise Chief Investment Officer (CIO) Matt Hougan view the rally as largely market-driven. 

“Trump’s executive actions,especially the reserve,opened doors for institutions to enter in size,” said Bitwise CIO Matt Hougan.

Forecasts vary, but many analysts expect Bitcoin to hit $120,000–$140,000 by year’s end, if the Fed eases policy and regulatory headwinds stay soft. 

With monetary policy in flux and political stakes high, Bitcoin’s rise is more than a market trend. It reflects a moment where technology, geopolitics, and finance collide. 

As the world watches the Fed’s July meeting, Bitcoin stands at the center of the global economic conversation.