Just as lawmakers focus on pro-law laws, the best bitcoin ever
President Donald Trump, a former code skeptic, has become a leading promoter in the industry.
Scripps News
Just two months after reaching the highest ever Bitcoin (Cryptography: BTC) I did it again. Major cryptocurrencies went on to over $115,000 on July 10th, continuing their incredible run. At the time of writing, it has increased by 25% in 2025 and 1,150% over the past five years.
Because of how unstable Bitcoin is, it is virtually impossible to predict where prices will move on. However, there are several reasons why it could reach even more heights later this year.
1. Code-friendly political landscape
The Trump administration has so far been suited to the cryptocurrency market. Paul Atkins, chairman of President Donald Trump’s Securities and Exchange Commission (SEC), said the SEC should focus on advances in market innovation. Under his leadership, the SEC has dropped several crypto lawsuits, including cases against Coinbase, Binance and Ripple, the companies behind XRP.
In March 2025, Trump signed an executive order to launch a US Strategic Bitcoin Reserve, a US government-owned Bitcoin stockpile. Arizona and New Hampshire have passed their own state-level Bitcoin Reserve Act.
Later this year we were able to see the passing of the Genius Act, a bill regulating the stablecoin industry. The US Senate passed it on June 17th, with the House vote coming next. While genius is not directly involved in Bitcoin, major crypto regulations help the industry gain legitimacy and attract more investors.
2. Increased investment in Bitcoin ETFs
The first Bitcoin Exchange Trade Fund (ETF) was approved by the SEC in January 2024, making Bitcoin more accessible to institutional and retail investors. Bitcoin ETFs have been experiencing a surge in investments since April, exceeding the $50 billion net inflow on July 10, according to data from Farside investors.
The inflow and outflow of Bitcoin ETFs fluctuates, but the excellent performance of cryptocurrencies should help them keep them interested. Standard Chartered, a British Bank, predicts that Bitcoin will reach a price of $200,000 by the end of the year, with ETF inflows becoming a key part of its growth.
3. Low interest rates
Interest rates affect stocks, bonds and crypto markets. This is because the reduction in the cost of borrowing money tends to encourage investment. In the past, the low interest rate environment has coincided with Bitcoin’s Bull Run, particularly in 2020 and 2021. Rate reductions can also lead to inflation, and one reason to invest in Bitcoin is as a hedge against inflation.
Analysts hope the Federal Reserve will cut fees later this year. CME FedWatch, a tool that measures market expectations, currently has a chance of cutting interest rates at around 68% in September. Goldman Sachs economists penciled in a rate cut of 25 basis points (0.25%) in September, October and December. Reductions will likely be a tailwind for Bitcoin anyway.
4. Weaker US dollars
Another factor that affects Bitcoin is the value of the US dollar. Bitcoin and the dollar are generally inversely proportional. When the dollar decreases, Bitcoin prices rise. This is because it is considered a better storage.
The US Dollar Index (DXY) is down 10% per year, primarily due to economic uncertainty related to the Trump administration’s import duties. The dollar could drop even further if the Fed decides to cut interest rates. I want a rebound in the dollar, but it’s likely that it will continue to decline, which is beneficial for Bitcoin.
5. Investments from Bitcoin Finance Companies
The recent development in the crypto sector is the rise of Bitcoin finance companies. These companies use debt or stocks to raise funds and buy Bitcoin that holds a balance sheet. MicroStrategy is the most well-known example, with over 597,000 Bitcoin, but in the second quarter of 2025, 125 public companies owned Bitcoin.
These companies purchased a record high of 159,107 Bitcoin, up 23% from the last quarter. Given how much Bitcoin has grown, it’s not surprising to see more companies investing in it.
Despite Bitcoin’s recent success and their potential tailwinds in the second half of 2025, it is still a dangerous asset. As we saw before, prices can always plummet. When investing in Bitcoin, the safest approach is to be a small part of your investment portfolio and be ready to ride the ups and downs.
Lyle Daly has a position in Bitcoin. Motley Fool has Bitcoin and XRP positions and is recommended. Motley Fool recommends Coinbase Global and Standard Chartered Plc. Motley Fools have a disclosure policy.
The Motley Fool is a partner at USA Today, providing financial news, analysis and commentary designed to help people control their financial lives. The content is produced independently of USA Today.
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