What’s behind bitcoin’s record highs?
Bitcoin touched a new all-time high at nearly US$118,000 on 11 July 2025 in a landmark event for the leading cryptocurrency. This translates into a 26% growth in 2025 and a severe 41% price appreciation over these three months.
Rallying institutional attention, halving events that reduce supply since April, and renewed hope for regulatory clarity are the three driving factors behind the rally. The entire crypto market capitalisation has now reached a level of US$3.7 trillion to mark a general recovery in digital assets.
Crypto stock reacted favourably, with companies such as Riot, Marathon, and Hut 8 rising between 1.5% and 3% on U.S. exchanges.
What is “Crypto Week” in Washington?
Next week, lawmakers shall convene for votes under the title “Crypto Week,” wherein three major legislative proposals will be debated:
- GENIUS Act (Guiding Emerging National Investment Using Stablecoins)
- CLARITY Act (Cryptocurrency Legal Advancement for Regulatory Transparency and Innovation)
- Anti-CBDC Surveillance State Act
Capitol Hill may use this exposure at a very crucial moment, with cryptocurrency attaining a bipartisan outlook. The industry views these reforms as paths toward regulatory clarity, enhancement of consumer confidence, and legitimisation of the sector.
President Donald Trump has previously voiced support for crypto innovation, increasing expectations that passed bills will become law.
GENIUS Act could reshape stablecoin markets
The S. 4359 position of the GENIUS Act secures a 1:1 reserve backing of stablecoins. That is to say, each dollar created must be backed by cash or short-term U.S. Treasury securities.
- It also provides for regular audits. And:
- Licensing of issuers
- Tight anti-money laundering compliance
It now sits awaiting action in the House; once passed there, it will go directly to the White House for signature. In support of this, it is argued that it would become a USD2 trillion stablecoin market in ten years.
Disputing the proposed bill, one set of critics claims that such legislation would create an unfair competitive landscape toward very large financial institutions over startups.
GENIUS Act mandates 1:1 reserve backing for stablecoins using cash or short-term Treasuries.
The CLARITY Act defines who regulates crypto
The CLARITY Act brings closure to the long-running confusion posed by the question of whether digital assets are securities or commodities. It outlines:
- SEC’s authority over initial token offerings
- Role of CFTC in regulating crypto spot and futures markets
- Clear procedure for an asset’s classification determination
This bill is considered a bone of contention for the pro-business and Wall Street entry into the space. Currently, it is under House consideration and may be on the Senate docket come September 2025.
A gain for innovation, said Senator Cynthia Lummis. “However, Senator Elizabeth Warren voiced concern that it may lack consumer protection and could ‘greenlight risky speculation.”
How are markets reacting?
Now that the rally has spilled out well beyond the stratosphere of Bitcoin.
- In a swift and vertical upward case, Ether (ETH) reportedly flourished with nearly an 8% appreciation in 24 hours.
- Solana (SOL) and XRP appreciated by more than 10%.
- The first week of July saw Bitcoin ETFs absorbing record inflows of US$1.6 billion.
The gains were extended to crypto stocks as well. Marathon Digital, Coinbase, and Galaxy Digital went up from 2% to 5% each.
Going by Citi’s Dirk Willer, “Bitcoin’s rise is not just technical; it reflects political tailwinds. Yet should the reforms stall, volatility would set back in.” eToro analyst Simon Peters added, “Any delay or dilution in legislation could prompt a short-term correction.”
What’s the investor outlook?
Bitcoin’s up 26% thus far this year, well past the year 2025 projections of previous years. Analysts believe this momentum could continue, especially if Congress can finish the task and provide clarity.
- JP Morgan forecasts that bitcoin could range as high as US$180,000 by year-end.
- Bloomberg analysts expect the flows for crypto ETFs to top at US$40 billion in 2025.
- The market remains positive as evidenced by a fear-and-greed index reading at 81 (extreme greed).
If both the CLARITY and GENIUS Acts are finally enacted, institutional investors may obtain the legal clarity that they have long harboured. This could mean trillions of dollars entering the space.
Still, geopolitical winds and inflation remain headwinds. Investors should consider diversifying their portfolios and watch legislative timelines carefully.
Vaccination of Cryptos on both Washington and Wall Street
U.S. lawmakers are preparing for a crucial week in the regulation of crypto.
- Bitcoin has surged to US$118,000, rising 26 per cent in 2025.
- The GENIUS and CLARITY Acts seek to establish stablecoin and asset class rules.
- The proponents say it can unlock about US$2 trillion in new crypto market capitalisation.
- Crypto stocks, altcoins, and ETFs are all increasingly coming to investor attention.
However, geopolitical risks and inflation serve as headwinds. Investors are advised to diversify and watch the timelines concerning legislation very closely.
Also Read: Bitcoin Hits $112K: What’s Fueling This Recent Surge?
Why Crypto Week in Washington Matters for the Future of Digital Assets
With Washington’s most important crypto week on the horizon, all eyes have turned to the U.S. lawmakers. The GENIUS Act, CLARITY Act, and Anti-CBDC Act may well define digital finance and cement America’s leadership in crypto.
Regulatory clarity is historically the fine line for crypto adoption in the U.S. Clear, enforceable rules could induce the Wall Street and Main Street institutions, pension funds, sovereign wealth funds, and just about every asset manager into walloping weights of investment.
With crypto increasingly becoming an election issue, lawmakers seem eager to project themselves as leaders of innovation. Yet, some critical questions are:
- Will all three major bills pass before July ends?
- Can stablecoins grow to US$2 trillion under this new framework?
- Will regulatory clarity effectively reduce fraud and build long-term market confidence?
The answers can shape not only crypto but also the very global financial systems.
