Bitcoin (BTC) surged to a new all-time high on Thursday, crossing over $124,000 for the first time in history.
The surge came a week after US President Donald Trump signed an executive order designed to block banks from denying services to cryptocurrency companies. The move, titled “Fair Banking for All Americans,” targets what the White House calls “unlawful debanking” of the crypto industry.
Fighting “Politicized” Banking and Operation Chokepoint 2.0
The order directs federal banking regulators to adopt policies that prevent politicized restrictions on financial services. It specifically names so-called “Operation Chokepoint 2.0” — an alleged Biden-era initiative critics say cut off crypto companies and their executives from the banking system.
The original Operation Chokepoint, launched under the Obama administration, discouraged banks from working with certain “high-risk” industries. Trump officials claim the recent version unfairly targeted crypto, limiting its ability to operate and innovate by restricting access to accounts, payment rails, and credit.
By dismantling these measures, the administration says it is restoring the industry’s right to banking services, regardless of political or regulatory bias.
The banking order is the latest in a series of pro-crypto steps from the Trump White House. The administration has also announced plans to allow cryptocurrency allocations in 401(k) retirement accounts, expanding mainstream access to digital assets.
In addition, Trump nominated Stephen Miran, a pro-crypto economist and advocate for growth-oriented monetary policy, to an upcoming Federal Reserve board seat. Miran supports policies aimed at fostering blockchain innovation and lowering barriers to crypto adoption.
The administration claims it has “effectively ended” Operation Chokepoint 2.0 and is reviewing other financial restrictions it considers harmful to the sector.
Bitcoin ETF Inflows: The Igniting Spark
Bitcoin’s record-breaking rally is additionally being fueled by a flood of institutional capital entering the market through spot Bitcoin ETFs.
In the five days leading up to today, these funds recorded more than $1 billion in net inflows, pushing their combined assets under management to roughly $153 billion, according to data from Farside Investors.
The momentum has been consistent. On Aug. 12 alone, US spot Bitcoin ETFs attracted $65.94 million in net inflows, marking the fifth consecutive day of positive flows, 99Bitcoins reported.
Cumulatively, total assets in US spot Bitcoin ETFs have surged past $162 billion in August—up from just $20 billion in early 2024—representing an eightfold increase in just 18 months.