Bitcoin has eased back after notching an eighth all-time record peak of this year yesterday, as the price of the world’s biggest cryptocurrency rocketed above $120,000.

The bitcoin price slipped back slightly today to $117,110, after yesterday’s bitcoin peak of $123,205 came as ‘crypto week’ kicked-off in US politics, with lawmakers set to debate a raft of crypto-friendly proposals. 

Chief among them are President Donald Trump’s proposed ‘genius’ – or Guiding and Establishing National Innovation for US Stablecoins – Act, which makes its way through Congress as part of White House efforts to make the country the world’s ‘crypto capital’.

 Trump’s second term in office has so far buoyed crypto investors and helped to drive the price of Bitcoin around 72 per cent higher since the 5 November 2024 election.

His ‘genius’ act aims to create a federal regulatory framework for stablecoins, including new rules for the issuance and use of digital assets.

The act is seen as a further boost to crypto’s institutional legitimacy, which was supercharged by the approval of spot Bitcoin ETFs earlier this year.

But Tom Stevenson, investment director at Fidelity International, said bitcoin’s ascension to new record highs alongside gold ‘could be a red flag’ indicating investor unease as the US dollar continues to face pressure. 

He added: ‘It is telling us that investors are worried about the sustainability of global debts and, in particular, the US budget deficit 

‘Investors are seeking safe havens and voting with their feet on the dollar and other US assets.’  

However, bitcoin is up by 25 per cent since the start of 2025, marking its second-worst start to a year since 2021, according to Bloomberg analysis.

The price is up closer to 15 per cent since Trump’s 20 January inauguration, highlighting the extreme volatility exhibited by the asset class.   

Bitcoin boom: Monday’s record high marked bitcoin’s eighth all-time peak this year 

Fears over Trump’s trade war plans drove the price of bitcoin around 20 per cent lower for the year to around $70,000 by the time of the President’s ‘liberation day’ barrage of global tariffs.

Since its 9 April trough, however, bitcoin has added almost 60 per cent.

Russell Shor, senior market analyst at Tradu, said major investors are continuing to pile cash into bitcoin ETFs, with last Thursday marking the largest daily inflow of 2025 as almost $1.2billion poured into the funds.

He added: ‘Institutional appetite remains robust. According to 10x Research, $15billion has flowed into bitcoin ETFs over the past two months, while retail investors have largely stayed on the sidelines.

‘Some forecasts see bitcoin ending the year between $140,000 and $160,000 — though further Fed rate hikes, if inflation is reignited by tariffs, could limit further gains.’

Despite optimism among crypto enthusiasts, bitcoin retreated from its new record high on Tuesday, falling 2.4 per cent to $116,919.20 by midafternoon in the UK. 

David Morrison, senior market analyst at Trade Nation, attributed the fall to ‘profit-taking rather than any shift in broader sentiment’.

He added: Although the overall tone in crypto markets remains constructive for the bulls. Still, with bitcoin once again failing to break cleanly, and then hold, above the $118,000 to $120,000 region, traders may become cautious about chasing further upside.’

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