Bitcoin Soars Past $118,000: Investors Embrace Risk-On Strategy
bitcoin Reaches New Heights Amid Tech Market Surge
bitcoin Hits All-Time High
bitcoin (BTC-USD) soared to a record-breaking price of over $118,000 on Friday, driven by a surge in bullish sentiment across various risk assets.
Correlation with Tech Stocks
The cryptocurrency’s impressive price movement aligns with the remarkable rise of Nvidia (NVDA), which recently achieved a $4 trillion market valuation. This connection underscores the ongoing relationship between the cryptocurrency market and technology stocks. The Nasdaq Composite (^IXIC) reached a new peak on Wednesday, while the S&P 500 (^GSPC) was on track to follow suit on Thursday.
Analyst Insights
Nic Puckrin, a crypto analyst and founder of Coin Bureau, noted that bitcoin has historically shown a strong correlation with technology stocks, a trend that continues to manifest in the current market dynamics.
Year-to-Date Performance
So far this year, bitcoin has appreciated approximately 21%, partly due to favorable policies from the Trump administration, which included the creation of a strategic bitcoin reserve and a broader digital asset portfolio.
Stability in Recent Trading
In the last two months, bitcoin has experienced a relatively stable trading range of $10,000, a notable contrast to its typical volatility.
Institutional Interest Driving Growth
Dilin Wu, a research strategist at Pepperstone, emphasized that sustained inflows from institutional investors are at the core of this rally. Corporations are increasingly participating in the crypto space, with companies like MicroStrategy (MSTR) and GameStop (GME) adding bitcoin to their financial statements. Additionally, Trump Media & Technology Group (DJT) has sought approval for a “Crypto Blue Chip ETF,” which would allocate about 70% of its assets to bitcoin.
Upcoming Regulatory Developments
bitcoin‘s recent breakout comes just days before Congress is set to commence its highly anticipated “Crypto Week” on July 14. During this period, lawmakers will discuss several bills that could shape the regulatory landscape for the industry.
Potential Impact of Legislation
Jesse Jarvis, CEO of Kaiko AI, a cryptocurrency market data provider, stated that a positive outcome from these discussions could further accelerate institutional investments, reinforcing bitcoin‘s status as a macro asset and boosting confidence in compliant crypto platforms.
Regulatory Framework for Stablecoins
Among the regulations under consideration is the GENIUS Act, which has recently passed through the Senate and aims to establish a federal framework for stablecoins.
Market Reactions
Shares of Circle (CRCL), the issuer of the USDC stablecoin (USDC-USD), saw a rise of approximately 2% on Thursday, marking an impressive increase of over 500% since its IPO on June 5. Trading platforms like Robinhood (HOOD) and Coinbase (COIN) also experienced gains during Thursday’s trading session.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
