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Over the last week, Bitcoin has experienced strong upward momentum, climbing nearly 30% year-to-date. This rally is being powered by increasing institutional interest, bullish market sentiment, and anticipated crypto-friendly legislation in the U.S. House of Representatives.

"It’s riding a number of tailwinds at the moment," said IG market analyst Tony Sycamore. "It looks like it can easily have a look at the $125,000 level."

Supporters point to U.S. President Donald Trump’s recent pro-crypto statements, as he has labeled himself the “crypto president” and urged for sweeping regulatory reforms. These developments have sent positive shockwaves across the entire digital asset ecosystem.

Regulatory Clarity in the U.S. on the Horizon

Later today, the U.S. House of Representatives is scheduled to debate several bills aimed at establishing a regulatory framework for digital assets. This long-awaited step is expected to provide much-needed clarity for the crypto industry, unlocking further institutional adoption.

Trump’s vocal support of cryptocurrencies and his administration’s active push to streamline regulations have resonated with crypto investors. Many are betting that the outcome of the debate could pave the way for a more structured and favorable business environment for crypto companies.

Ripple Effect on Other Cryptocurrencies

The bullish trend in Bitcoin has spilled over to other cryptocurrencies. Ethereum (ETH), the second-largest cryptocurrency, scaled a five-month high of $3,048.23 and last traded at $3,036.24.

The total market capitalization of the cryptocurrency sector has now reached an astonishing $3.78 trillion, according to CoinMarketCap. The market is witnessing a widespread rally as investors reposition themselves for what could be a landmark week for the industry.

Nvidia's High-Stakes Visit to China Amid AI Chip Tensions

As crypto markets surge, Nvidia CEO Jensen Huang is preparing for a critical media briefing in Beijing on July 16. This marks Huang’s second trip to China this year as he navigates the increasingly complex landscape of U.S.-China tech relations.

Huang’s visit comes amid heightened scrutiny from U.S. lawmakers, who have urged him to avoid engaging with Chinese firms linked to military or intelligence operations. This comes as the U.S. continues to enforce strict export controls on advanced semiconductor technologies.

Nvidia recently faced a ban on exporting its powerful H20 AI chips to China, cutting its market share significantly. Despite these setbacks, China remains a vital market for Nvidia, contributing $17 billion to its revenue in the last fiscal year, or 13% of total sales.

Walking the Geopolitical Tightrope

In a recent CNN interview, Huang attempted to downplay concerns about U.S.-made chips being used in China’s military applications. He argued that the Chinese military cannot rely on American tech due to the constant threat of regulatory changes.

“They don’t need Nvidia’s chips to build their military,” said Huang. “They already have plenty of computing capacity.”

Nevertheless, experts believe Nvidia’s technology will likely play a central role in global AI development, including in the military sphere. This dual-use potential of AI chips remains a key sticking point between Washington and Beijing.

Open-Source Models and U.S. Concerns

Concerns have also surfaced regarding China's AI startups like DeepSeek, which reportedly used Nvidia chips to develop open-source reasoning models. While these models offer innovation potential, their dual-use nature raises red flags in national security discussions.

Huang defended open-source AI, emphasizing that it enables global innovation and economic growth. He called DeepSeek’s R1 model “revolutionary” and noted its ability to empower smaller startups and nations in AI development.

Malaysia's Clampdown on AI Chip Exports

Amid growing pressure from the U.S., Malaysia has introduced new regulations requiring trade permits for the export and transshipment of high-performance AI chips of U.S. origin. The rule, which took effect immediately, aims to plug regulatory loopholes.

Malaysia’s trade ministry emphasized that any attempt to circumvent these rules would face strict legal consequences. The country is reviewing whether U.S.-made AI chips should be listed as strategic items, which would subject them to even stricter controls.

This move aligns with the broader international effort to regulate the movement of cutting-edge AI hardware and prevent its misuse in sensitive technologies.

Conclusion: A Pivotal Week for Technology and Crypto

This week could be a turning point for both the cryptocurrency and AI sectors. With Bitcoin’s record rally buoyed by potential U.S. regulatory reforms and Nvidia facing geopolitical balancing acts, the intersection of technology, policy, and innovation has never been more critical.

As governments race to regulate and capitalize on emerging technologies, the outcomes of this week’s events could shape the future of global finance, tech infrastructure, and international relations. Investors, regulators, and innovators alike will be watching closely.