Bitcoin Hits Record $124,000 on Trump’s Crypto-Friendly Rule Shift

Bitcoin surged to an all-time high of $124,000 on Wednesday, buoyed by sweeping regulatory changes introduced under U.S. President Donald Trump aimed at fostering cryptocurrency adoption. The move cements Bitcoin’s position as the largest digital asset by market capitalization, now valued at over $2.45 trillion.

The White House announced late Tuesday that it would roll out a comprehensive framework easing tax burdens on digital asset transactions, streamlining licensing for crypto businesses, and recognizing certain cryptocurrencies as “strategic financial instruments” for domestic and cross-border trade. Analysts say the package, coupled with favorable capital gains exemptions for long-term holders, has significantly boosted investor confidence.

“Markets were anticipating pro-crypto policy shifts, but the scale and speed of implementation exceeded expectations,” said David Klein, senior strategist at Horizon Digital Capital. “This is the most consequential regulatory shift for U.S. crypto markets since the launch of spot ETFs.”

Industry leaders also applauded the move. “Clear, supportive rules remove a decade-long cloud of uncertainty,” noted Carla Mendes, CEO of crypto exchange BitAxis. “It opens the door for institutional capital that has been sitting on the sidelines.”

The market reaction was immediate. Bitcoin rose 12% in 24 hours, adding nearly $260 billion to its market cap. Trading volume across major exchanges spiked to $145 billion, with U.S.-based platforms recording their busiest day of 2025. Ethereum also climbed 9%, trading near $4,950, while smaller altcoins saw double-digit gains.

Some economists warned of potential overheating. “While regulation is welcome, sudden price spikes increase volatility risk,” said Mark Feldman, an economist at the Institute for Digital Finance. “A healthy consolidation phase will be critical for market stability.”

Looking ahead, analysts expect further gains if other jurisdictions follow the U.S. lead. However, the prospect of rapid price appreciation may draw renewed scrutiny from global regulators, particularly in Europe and Asia, where crypto policy remains fragmented.

Bitcoin’s rally underscores the impact that regulatory clarity can have on digital asset markets, setting the stage for what could be the most significant period of mainstream adoption in the cryptocurrency’s 16-year history.