Bitcoin 101: crypto's latest boom explained

Bitcoin's boom

Bitcoin exploded through the US$123,000 mark on 18 July 2025, propelled by new stablecoin rules under the GENIUS Act and a wave of corporate buying. As digital‑asset markets swell past US$4 trillion in total value, today’s milestone signals a shift from retail frenzy to institutional conviction, setting the stage for the next leg of the rally.

Bitcoin price chart increase June to July 2025

Regulatory catalyst: GENIUS Act

A landmark bill championed by President Trump and signed into law on 18 July 2025, the GENIUS Act establishes clear legal guardrails for stablecoins this laying the foundation for broader crypto integration in traditional finance. Backed by bipartisan support, it codifies reserve requirements and redemption protocols, ensuring every stablecoin is fully collateralised and redeemable at par.

The legislation also empowers the Treasury and Federal Reserve to coordinate oversight, bringing digital currencies under a unified regulatory framework.

Why the GENIUS Act matters

• Stablecoin clarity: defines issuance, reserves and redemption standards
• Institutional on-ramp: removes legal uncertainty for banks and funds
• Mainstream trust: signals US commitment to crypto leadership

Bitcoin smashes through $123,000 barrier...

The regulatory clarity has propelled Bitcoin to unprecedented heights, with the world's largest cryptocurrency surging past US$123,000 for the first time in its history. CryptoQuant analysis shows Bitcoin consolidating around $118,800 after staging a spectacular bullish surge from $98,000 to a peak above $123,200. While trading volume has since moderated, suggesting patience among buyers, the technical foundation remains robust.

...technical targets point to $200,000

Market analysts are setting increasingly ambitious price targets based on technical indicators. Joe Shew from Crypto Consulting Institute notes that basic Fibonacci extensions suggest potential moves toward $180,000, with $150,000 representing a logical intermediate target. Bitcoin has already achieved the 1.618 Fibonacci extension at $120,000, confirming the strength of the current rally.

The technical picture supports further upside, though a decisive break above recent highs on stronger volume would be needed to confirm the next leg higher.

Altcoins ride the wave higher

The Bitcoin surge has created a rising tide that's lifting the entire cryptocurrency ecosystem. Ether attracted inflows exceeding US$2.1 billion last week, while XRP has spiked to multi-year highs amid increasingly favourable regulatory conditions.

XRP's dramatic surge

XRP's rally has been particularly striking, with the token surging from around $2 to above US$3.60 in recent weeks. This momentum stems from two key developments:

• The US Securities and Exchange Commission (SEC) withdrawing its appeal over programmatic sales
• Growing speculation about a forthcoming XRP spot exchange-traded fund (ETF)

XRP one-year chart

Peter McGuire from Trading.com highlights the broader policy implications, noting that the GENIUS Act could unlock up to $9 trillion in assets for cryptocurrency investment through pensions and 401K plans. Technical analysis suggests XRP could break past US$5 if momentum holds, with some forecasts pointing to potential peaks around US$10 in extreme bull market scenarios.

Australia joins the digital currency race

The Reserve Bank of Australia (RBA) has announced a significant move towards cryptocurrency adoption as the global crypto market value surpasses US$4 trillion. Introducing....

Project Acacia trial

• Participants: Major banks including CBA, ANZ, and Westpac
• Scope: Testing 19 real-world cases and 5 simulations using digital currencies
• Objective: To determine if token-based money can enhance efficiency, transparency, and cost-effectiveness in large-scale financial settlements such as: bonds, trade receivables and carbon credits
• Timeline: The six-month trial began recently, with results expected in early 2026

The RBA's initiative represents a pivotal step in integrating cryptocurrencies into mainstream financial systems. The trial aims to demonstrate the potential benefits of digital currencies in improving financial processes, while industry experts emphasise the transformative impact of reducing reconciliation needs through blockchain technology.

Insights from industry experts

Arturo Rodriguez from NotCentralised, a participant in the trial, describes the initiative as potentially transformative. He believes the technology addresses reconciliation problems that cost financial institutions hundreds of millions of dollars annually without providing complete solutions.

Rodriguez emphasises that the blockchain technology can bring compliance, transparency, and auditability while potentially eliminating reconciliation requirements across complex value chains that are crucial for the broader economy.

Warning signs emerge amid retail euphoria

Despite the bullish momentum, market veterans are cautioning against speculative excess as retail investors flood back into the market. Joe Shew warns that many participants still maintain a gambling mentality toward cryptocurrency investing, particularly as prices approach the $130,000 range.

The pattern suggests retail participation tends to spike at market tops, often followed by significant sell-offs. This psychological dynamic reflects the four-year cycle nature that has historically characterised cryptocurrency markets. Key warning signs include:

• Increased retail participation at elevated price levels
• Speculative rather than strategic investment approaches
• Focus on quick profits over long-term wealth building

However, Shew maintains a long-term bullish outlook, predicting Bitcoin will trade above $1 million within the next decade. His key message for investors centres on strategic positioning:

• Focus on portfolio allocation rather than market timing
• Build multigenerational wealth through patient investment
• Treat crypto as part of a diversified strategy

The revolution enters a new phase

The cryptocurrency revolution appears to be entering a new phase characterised by regulatory clarity, institutional adoption, and mainstream integration. While volatility remains a defining characteristic, the foundation is being laid for what could be the most significant financial transformation of the digital age.