Bitcoin Price Climbs Past $118K Ahead of Key U.S. Policy Update on Digital Assets - Cryptured.com

Last week, Bitcoin (BTC) hit a new all-time high of $123,218. As of Monday, it is trading over $118,000, consolidating inside a narrow range. The GENIUS Act, which US President Donald Trump signed into law on Friday, represents a major turning point for the cryptocurrency business as a whole.

Additionally, traders are anticipating Tuesday’s release of the White House’s first virtual asset policy report, which is anticipated to offer additional guidance for the market capitalization of the largest cryptocurrency and the digital asset space.

In the meantime, $2.39 billion in inflows into US-listed spot Bitcoin Exchange Traded Funds (ETFs) marked another successful week, demonstrating ongoing institutional investor confidence.

The first report on virtual asset policy will be released by the White House.
Executive Order (EO) 14178 mandates that the US White House release its first virtual asset policy report Wednesday.

A new Presidential Working Group on Digital Assets Markets was established on January 23 with the signing of this Executive Order by US President Donald Trump. The group has 180 days, till Tuesday, to create a framework for legislation governing digital assets that would act as a manual for the cryptocurrency sector.

Additionally, it seeks to establish a strategic national digital asset stockpile for the United States. According to Trump’s campaign pledge, this move might be the first step toward creating a strategic reserve of Bitcoin.

Trump’s AI and crypto czar David Sacks will serve as the working group’s supervisor. The Secretary of the Treasury Scott Bessent, interim Chair of the US Securities & Exchange Commission (SEC) Mark Uyeda, and other important federal department heads will be among the other participants.

Along with reversing the previous Biden administration’s decision on digital assets, the executive order forbids any action related to the creation and promotion of a Central Bank Digital Currency (CBDC).

The findings of this analysis, which was released on Tuesday, may offer regulatory clarity and a framework for regulating digital assets, which may have an effect on the price and long-term acceptance of Bitcoin.

Trump signs the GENIUS Act into law

Last Friday, Donald Trump signed the GENIUS Act into law, one day after the US House of Representatives passed the measure by a vote of 308–122. With its specific anti-money laundering (AML) guidelines and requirements for full reserves backed by the US dollar (USD), the law creates a clear federal regulatory framework for stablecoins and their issuers in the US.

This historic bill puts the US at the forefront of stablecoins, opening the door for other nations to examine their own stablecoin laws—or lack thereof, according to a report released Monday by Deutsche Bank Research.

Analysts at Deutsche Bank stated that it is a major turning point for the cryptocurrency sector, both domestically and internationally.

The GENIUS ACT’s enactment will further strengthen the US dollar’s hegemony, according to the analysis, with USD-denominated stablecoins accounting for more than 99% of the stablecoin market capitalization. By directing non-USD cash into the US dollar and bolstering US short-term debt markets, stablecoin issuers’ function as quasi-money market funds is formally recognized by the GENIUS Act.

By 2028, the US Treasury estimates that the total value of T-bills owned by stablecoin issuers—aside from interest-bearing stablecoins—will reach around $1 trillion. The graph below illustrates that as of Q1 2025, Tether alone possesses more than $120 billion in Treasury bills, placing it among the largest holders of US Treasuries.

Bitcoin institutional demand remains strong

There is still a lot of institutional interest for Bitcoin. Last week saw a $2.39 billion influx into Bitcoin Spot ETFs, the sixth straight week of positive flows since mid-June, according to SoSoValue data. BTC may hit its highest point ever, $123,218 and higher, if the influx keeps up and gets stronger.

Bitcoin Price Outlook: BTC Holds Steady Between $116K and $120K

The price of bitcoin has been fluctuating between $116,000 and $120,000 since July 14, when it hit a fresh all-time high of $123,218. As of this writing on Monday, it is trading at about $118,500, a little above.

The rebound might continue toward the new all-time high of $123,218 if Bitcoin closes above the top boundary of the consolidation zone at $120,000 every day.

On the daily chart, the Relative Strength Index (RSI) is 66 and rising, suggesting bullish momentum. The Moving Average Convergence Divergence (MACD) indicator, on the other hand, is poised to reverse a bearish crossover. A selling signal would be provided if it consistently displays a bearish crossover.

Conversely, if Bitcoin consistently breaks below the lower consolidation boundary at $116,000, it may continue to fall and retest the 50-day Exponential Moving Average (EMA) at $110,325.