Washington, July 11 EST: Bitcoin crossed $118,000 this week for the first time, extending its 2025 gains to roughly 26% and sparking a fresh wave of investor interest ahead of a potentially consequential stretch in Washington. Beginning July 14, lawmakers are expected to take up three crypto bills that could, for the first time, lay down federal guardrails for the sector.
The price spike, while eye-catching, isn’t just about hype. Institutional capital has been quietly returning to digital assets for months, drawn by clearer policy signals and the sheer weight of liquidity looking for growth in a slowing macro environment.
Institutional Cash Returns — Quietly but Decisively
Unlike the frothy runs of past cycles, this leg has come without the fanfare of retail FOMO. What’s pushing prices now is institutional repositioning. Hedge funds and asset managers — many of whom sat out the crypto winter — are rotating back into Bitcoin, encouraged by signals from policymakers and the broader acceptance of crypto on Wall Street’s infrastructure map.
According to Reuters, this return is rooted less in narrative and more in portfolio math: Bitcoin’s correlation to equities has weakened, volatility has stabilized somewhat, and allocators are hungry for asymmetric upside in a year that’s offered few sure bets.
Crypto Stocks Ride the Wave — for Now
Shares of crypto-adjacent firms jumped in pre-market trading, tracking the asset’s upward move. Coinbase, MicroStrategy, Riot Platforms, and others logged modest gains, most under 4%, as investors recalibrated exposure to firms with high Bitcoin sensitivity.
MicroStrategy, in particular, continues to trade like a proxy ETF. With Bitcoin holdings now worth roughly $70 billion, compared to a $43 billion book value, its balance sheet has turned into a leveraged bet on the coin’s price. That’s either a brilliant hedge or a ticking clock, depending on your risk lens — but either way, it’s a real-world test of digital asset accounting.
Crypto Week in D.C.: Not Just Optics Anymore
Starting Monday, Capitol Hill will host what insiders are calling “Crypto Week”, with the House scheduled to debate three major bills:
- The Genius Act, focused on easing startup-level compliance;
- The Clarity Act, aimed at defining digital assets under U.S. law;
- The Anti-CBDC Surveillance State Act, which seeks to block federally issued digital currencies.
The names may sound theatrical, but the stakes are real. These aren’t fringe efforts — they’re gaining traction among both parties. And while few expect comprehensive regulation to materialize this summer, investors are betting that the signal matters more than the scoreboard.
“Washington’s no longer ignoring crypto — it’s entering the room,” said one senior policy advisor involved with the Clarity Act discussions.
Not Everyone’s Convinced — Or Buying the Rally
Despite the price action, serious skepticism remains. Senator Elizabeth Warren renewed criticism this week, accusing the crypto sector of wielding too much influence in D.C. and raising fresh concerns about lobbying efforts linked to former Trump officials.
There are also real questions about whether Bitcoin’s “digital gold” narrative holds water in a high-rate world. According to The Economic Times, several market advisors continue to argue that Bitcoin still lacks the depth and reliability to serve as a hedge or reserve store — especially when volatility remains this high.
And while Dogecoin and Hedera notched double-digit gains alongside Bitcoin this week, those spikes are just as likely to spook cautious capital as they are to lure it in.
Markets Like Momentum, But They Need Structure
The current run is no longer about novelty or rebellion. It’s about finding footing in a fragmented market that still lacks a federal playbook. What happens in Congress over the next few weeks won’t settle the crypto question, but it might finally frame it.
At a time when public markets are treading water and deal flow in private equity has cooled, crypto is once again flashing as a high-beta growth play — with all the risk and reward that implies. Whether the capital sticks around will depend less on price charts and more on policy.
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A Wall Street veteran turned investigative journalist, Marcus brings over two decades of financial insight into boardrooms, IPOs, corporate chess games, and economic undercurrents. Known for asking uncomfortable questions in comfortable suits.
