Bitcoin has achieved a new all-time high, reaching $124,002.49, driven by growing expectations of Federal Reserve interest rate cuts and positive momentum from recent U.S. financial reforms. Ether also surged to $4,780.04, its highest since 2021. This rally reflects expanding institutional interest, a favorable regulatory outlook under President Donald Trump's administration, and an executive order allowing crypto assets in 401 retirement accounts.
Since Trump's re-election in November 2024, the crypto market has seen significant regulatory wins, including the implementation of stablecoin regulations and a revamped securities framework. These developments have fueled a broader crypto rally, despite volatile tariff policies. The total cryptocurrency market capitalization has swelled to over $4.18 trillion from $2.5 trillion in late 2024.
The surge in crypto prices is also evident in the performance of crypto exchange Bullish, which saw its shares set to open over 75% above its IPO price on the New York Stock Exchange. Priced initially at $37, Bullish raised $1.11 billion, valuing the company at $5.4 billion. With pre-market indications between $60 and $65, its valuation could exceed $9.5 billion. This uptick comes amid regulatory tailwinds, institutional interest, and growing adoption of cryptocurrencies driven by ETF inflows and corporate treasury involvement.
However, the crypto industry is not without its challenges. Do Kwon, a South Korean cryptocurrency entrepreneur known as "the cryptocurrency king," pleaded guilty in a Manhattan federal court to two counts of fraud related to the $40 billion collapse of Terraform Labs. The charges involved conspiring to commit commodities, securities, and wire fraud, as well as a separate count of wire fraud. Kwon co-founded Terraform Labs, which launched the stablecoin TerraUSD, claiming it was a safe investment. Its collapse in May 2022, alongside its companion token Luna, led to massive investor losses worldwide.
In response to the growing influence of cryptocurrencies, the Trump administration has taken significant steps to integrate digital assets into the U.S. financial system. World Liberty Financial, a crypto firm backed by Donald Trump and his sons, announced a $1.5 billion deal to buy its proprietary crypto tokens through a partnership with Nasdaq-listed blockchain company ALT5 Sigma Corporation. Half of the funding will be paid in World Liberty’s in-house token $WLFI, with the remaining used to buy more $WLFI, settle litigation, and pay debts. This venture underscores the Trump family's intensified involvement in the crypto space, bolstered by Trump's return to the presidency in January and his continued support for digital assets, including appointing favorable regulators and encouraging institutional participation.
These developments highlight the dynamic and rapidly evolving nature of the cryptocurrency market, influenced by regulatory changes, institutional adoption, and individual actions within the industry.
