In a major display of bullish momentum, the market’s leading cryptocurrency, Bitcoin (BTC), surged to a new record high on Monday, surpassing $123,000 for the first time.
US House Kicks Off ‘Crypto Week
The Bitcoin price climbed more than 90% year-to-date with Monday’s rally, reaching $123,200, and reflecting a nearly 15% increase over the past month.
This upward momentum coincides with the US House of Representatives’ “crypto week,” which will feature debates on legislation aimed at reducing regulatory hurdles that have long been viewed as obstacles for the cryptocurrency sector.
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One of the key pieces of legislation set for discussion in the House is the GENIUS Act, which aims to establish regulatory frameworks for stablecoins. Proponents of the GENIUS Act argue that it is a groundbreaking initiative that formalizes a critical aspect of the cryptocurrency industry.
They believe it will enhance consumer protections, facilitate the entry of traditional financial institutions, and contribute to the growth of the digital currency market.
Conversely, critics assert that the bill represents a “weak set of regulations” that may not adequately safeguard consumers or prevent illicit trading activities involving stablecoins.
Growing Support For Crypto Regulation
In addition to the GENIUS Act, the House will also debate measures to clarify the federal government’s regulatory approach to cryptocurrencies and proposals that could prevent the Federal Reserve from issuing its own digital currency.
Bryan Armour, director of passive strategies research at Morningstar, remarked that this legislative push reflects a series of favorable developments for the crypto industry since President Donald Trump’s election in November. Since then, Bitcoin’s price has surged nearly 80%.
As “crypto week” unfolds, Armour suggests it signals a continuation of supportive policies under the Trump administration. However, Trump’s involvement in the cryptocurrency space has raised concerns about potential conflicts of interest.
For instance, his backing of World Liberty Financial’s stablecoin, USD1, has led to significant investments in major exchanges like Binance, which critics say creates opportunities for Trump’s business to profit.
Despite these concerns, Trump has denied any wrongdoing, and a White House spokesperson has stated that his financial assets are managed in a trust to avoid conflicts.
Bitcoin ETFs Propel Price Surge
The recent surge in Bitcoin prices has also been fueled by the US approval of Bitcoin exchange-traded funds (ETFs) last year. These investment vehicles have proven to be successful, with record-breaking amounts of capital moving into them.
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The overall asset value of Bitcoin ETFs has reached a record high of over $158 billion, driven by a wave of investments that included over a billion dollars flowing into these funds on consecutive days last week.
Nikhil Bhatia, a finance professor at the University of Southern California, noted that the approval of Bitcoin ETFs has contributed significantly to institutional adoption of Bitcoin, signaling a return to a bullish market sentiment.
As of this writing, BTC’s price has retraced back to the $117,000 level, 4.3% below its recently achieved all-time high.
Featured image from DALL-E, chart from TradingView.com
