Bitcoin has reached a new summit, and he has several tail winds that could maintain the momentum.
The political climate should continue to benefit Bitcoin, especially if the engineering law is adopted.
Bitcoin ETF entries have increased and recently exceeded $ 50 billion in total.
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Only two months after reaching a top of all time, Bitcoin (Crypto: BTC) did it again. The main cryptocurrency exceeded $ 115,000 on July 10, continuing a remarkable race. It increased by 25% in 2025 at the time of writing this article (July 10) and 1,150% in the past five years.
Due to the volatile Bitcoin, predicting where the price will be going on is actually impossible. But there are several reasons why he could reach even higher peaks during the second half.
Image source: Getty Images.
So far, the Trump administration has been good for the cryptocurrency market. President Donald Trump for the President of Securities and Exchange Commission (SEC), Paul Atkins, said that the SEC should focus on the increase in market innovation. Under its management, the SEC has abandoned several Crypto prosecution, including business against JammingBinance and Ripple, the company behind Xrp.
In March 2025, Trump signed an executive decree to start the American Bitcoin Strategic Reserve, a stock of bitcoin belonging to the United States government. Arizona and New Hampshire have adopted legislation for their own Bitcoin reserves at the state level.
During the second half, we were able to see the adoption of the Act on Engineering, a bill to regulate the Stablescoin industry. The American Senate adopted it on June 17 and a vote in the House will be the next one. Even if the law on engineering does not directly imply Bitcoin, any major cryptography regulation could help industry acquire legitimacy and attract more investors.
The first funds negotiated in exchange for Bitcoin (ETF) received the approval of the SEC in January 2024, which made Bitcoin more accessible to institutional and retail investors. The FNB Bitcoin have increased in investment since April, and they crossed $ 50 billion in net entries on July 10, according to Farside investor data.
While Bitcoin ETF inputs and outputs fluctuate, the excellent performance of the cryptocurrency should help continue to arouse interest. Standard charteredA British bank, predicted that Bitcoin will reach a price of $ 200,000 by the end of the year and that FNB entries will be an important part of its growth.
Interest rates affect stock, obligations and cryptographic markets, as a reduction in the cost of borrowing money tends to stimulate investments. In the past, low interest environments have coincided with Bitcoin bull races, especially in 2020 and 2021. Rate reductions can also lead to inflation, and one of the reasons why people invest in Bitcoin are like coverage against inflation.
Analysts expect the federal reserve to reduce rates during the second half of this year. CME Fedwatch, a tool that measures market expectations, currently highlights a rate drop from September to around 68%. Goldman Sachs economists are on a rate of rate drops of 25 basis points (0.25%) in September, October and December. All rate reductions will likely be a rear wind for Bitcoin.
Another factor that affects Bitcoin is the value of the US dollar. Generally, Bitcoin and the dollar were inversely linked. When the dollar decreases, Bitcoin increases the price, as it is considered a better reserve of value.
THE US dollar index (Dxy) is already down 10% over the year, largely due to the economic uncertainty linked to the import prices of the Trump administration. If the Fed decides to reduce interest rates, the dollar could decrease even more. Although I hope that the dollar bounces, there is a high possibility that it continues to decrease, which could be beneficial for Bitcoin.
A recent development in cryptographic space is the rise of Bitcoin cash societies. These companies use debts or actions to collect funds and buy Bitcoin which they then hold on their balance sheets. Microstrategy is the best known example, with more than 597,000 bitcoin, but 125 public companies held Bitcoin in the second quarter of 2025.
These companies bought a record summit of 159,107 Bitcoin, an increase of 23% compared to the previous quarter. Given the amount of bitcoin, it would not be surprising to see more companies invest in it.
Despite the recent success of Bitcoin and these potential tail winds during the second half of 2025, it is always a risky asset. As we can see previously, the price could fall at any time. If you are investing in Bitcoin, the safest approach is to make it only a small part of your investment wallet and be ready to get out of the ups and downs.
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Lyle Daly has positions in Bitcoin. The Motley Fool has positions and recommends Bitcoin and XRP. The Motley Fool recommends Coinbase Global and Standard Charted Plc. The Motley Fool has a policy of disclosure.
Bitcoin has just hit a new record. 5 reasons why he could climb even further in the second half of 2025. Was initially published by the Motley Fool
