Bitcoin Hits Record $123,500 as Trump Administration Fuels Crypto Rally

Bitcoin just smashed through $123,500 while Ethereum soared 6% as Trump's pro-crypto policies and potential 401(k) access could transform digital asset investing forever.

Published by Ecem EFE

14 August 2025, 14:15 published Updated 14 August 2025, 14:15

Bitcoin Soars Past $121K While Ethereum Nears All-Time Highs in 2025

Bitcoin has once again captured headlines as the world’s largest cryptocurrency climbed over 1% on Thursday, reaching $121,655 after hitting a stunning record high of $123,500 on Wednesday. This remarkable surge continues to be fueled by growing institutional demand and expectations of more favorable monetary policies under the Trump administration.

Impressive Year-to-Date Performance Shows Market Momentum

The leading cryptocurrency has delivered exceptional returns for investors, posting a 31% gain year-to-date and an impressive 60% surge from April’s market lows. This outstanding performance has been primarily driven by substantial inflows into spot exchange-traded funds and strategic corporate purchases.

Many public companies have been following the successful blueprint established by MicroStrategy (MSTR), the software firm that transformed into a bitcoin juggernaut by adding the cryptocurrency to their balance sheets. This corporate adoption trend has become one of the key drivers behind this year’s token rally.

Trump Administration’s Pro-Crypto Stance Fuels Optimism

Market strategists consistently point to the Trump administration’s pro-crypto stance as a major catalyst for the current bull run. Tom Essaye, founder of Sevens Report Research, recently shared his insights with Yahoo Finance, highlighting the administration’s supportive approach.

“The administration is pushing crypto. They are pushing bitcoin. Bitcoin is the lead dog in the crypto market,” Essaye explained during his interview earlier this week. While acknowledging short-term market frothiness, he remains optimistic about long-term prospects.

“So is it short-term a little frothy? Sure,” he added. “But longer term, there are some fundamental changes here that I think are bullish for it and we’ll send it much higher in the future.”

Revolutionary 401(k) Policy Changes Could Expand Retail Access

Last week marked a significant milestone when President Trump issued an executive order directing the Labor Department to explore allowing 401(k) plans to hold cryptocurrencies and other alternative assets. This groundbreaking move could dramatically expand retail access to crypto markets, potentially bringing millions of new investors into the space.

The timing of this policy initiative coincides with broader market optimism, as US equities have been notching all-time records on expectations that the Federal Reserve will cut interest rates in September. Additionally, market participants anticipate that Trump’s next Fed chair pick will likely favor looser monetary policy.

Ethereum Reaches Near-Record Heights Amid Wall Street Bullishness

Meanwhile, Ethereum (ETH-USD) has been making its own headlines, with prices rising to near-record levels on Wednesday as Wall Street grows increasingly bullish on the world’s second-largest cryptocurrency by market capitalization.

Ethereum’s native token, ether, jumped as much as 6% to hover above $4,700 per token, positioning itself just shy of its 2021 record highs. This surge reflects growing corporate interest in gaining exposure to the technological infrastructure behind decentralized finance and digital assets, particularly stablecoins.

Corporate Treasury Strategies Drive Ethereum Adoption

Companies have been strategically adding ether to their balance sheets as a way to capitalize on the expanding DeFi ecosystem. This week, Bitmine Immersion Technologies (BMNR), an ethereum treasury company, announced ambitious plans to sell up to $20 billion worth of stock to boost its cryptocurrency holdings.

Tom Lee, Fundstrat’s head of research who also serves as chairman of Bitmine, expressed strong confidence in Ethereum’s long-term potential in a Wednesday note. “We have stated multiple times we believe Ethereum is the biggest macro trade over the next 10-15 years,” Lee wrote.

Lee emphasized that the majority of Wall Street crypto projects and stablecoins – digital tokens backed by assets like the US dollar – are being built on the ethereum infrastructure, underlining the platform’s strategic importance.

Legislative Support Boosts Market Confidence

The cryptocurrency market has also benefited from recent legislative developments. Ether has surged more than 50% since the GENIUS Act legislation was passed last month, which creates important guardrails for the stablecoin industry, providing much-needed regulatory clarity for market participants.