Bitcoin reaches new record high ahead of US House's ‘Crypto Week'
Interest in Bitcoin was fuelled by a bullish, optimistic trading outlook across risk assets and an appetite for investment in tech companies, such as Nvidia, which recently surged to a $4 trillion valuation.
Bitcoin's all-time high also comes days before what the US House of Representatives, one of Congress' two chambers, has labelled as 'Crypto Week', starting on 14 July. This is when lawmakers are expected to debate a series of bills that could define the regulatory framework for the industry in the United States.
Bitcoin gained more than 20% this year against the US dollar.
Bloomberg's data shows that investors poured around $1.2 billion (€1bn) into Bitcoin ETFs (exchange-traded funds) on Thursday, pushing the price to a new high beyond $116,000 before the rally continued on Friday.
Much of the investments pouring into crypto came through ETFs. Cryptocurrency-based ETFs make it easier for investors to gain exposure to cryptocurrencies without having to buy them directly. These funds have exploded in popularity since bitcoin ETFs began trading in US markets last year.
The strong interest in crypto boosted the price of the second-biggest crypto asset, too. Ethereum gained more than 6%, and traded at around $3,000 (€2,600) on Friday.
Meanwhile, the US President continues to expand his crypto-related offerings. Trump was once a bitcoin sceptic but has since warmly embraced the cryptocurrency industry.
On Tuesday, his family business Trump Media filed paperwork at the Securities and Exchange Commission for approval to launch the "Crypto Blue Chip ETF" later this year.
This is a new exchange-traded fund tied to the prices of five popular cryptocurrencies. The proposed ETF would have 70% of its holdings in bitcoin, 15% in Ethereum, and 8% in Solana, a cryptocurrency popular in the meme coin community.
The Trump administration has pushed for crypto-friendly regulations and laws, in line with the president's ambitions to make the US the world capital for crypto.
"If we didn't have it, China would," Trump said.
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