By Tina Teng
Published on
ADVERTISEMENTBitcoin surged to a fresh record high on Thursday, fuelled by optimism that the US Congress will soon pass a bill ill for stablecoin- the GENIUS Act, which is set to be the first regulatory framework under the Trump Administration.
During Thursday’s Asian session, the world’s largest cryptocurrency soared past $111,000 (€98,000) at 5:23 am CEST, surpassing its previous all-time high of over $109,000 (€96,000) set during President Trump’s inauguration on 20 January.
The rally was supported not only by legislative developments but also by increasing institutional interest. Michael Saylor’s firm, Strategy, disclosed a further aggressive Bitcoin purchase worth $765 million (€675 million) on Monday, bringing its total holdings to over $63 billion (€56 billion). Major financial institutions, including JPMorgan Chase, Morgan Stanley and BlackRock, have also expanded crypto offerings to clients.
“Perhaps the most crucial shift is who’s buying. This is the first real bull market where institutional participation is front and centre,” said Josh Gilbert, market analyst at eToro Australia.
Stablecoin legislation wins key Senate vote
Stablecoins are cryptocurrencies designed to maintain a stable value by being pegged to reference assets such as the US dollar, the euro or commodities like gold.
On Monday, a group of Senate Democrats dropped their opposition to the legislation, allowing it to clear a key procedural vote and raising hopes that the Senate will pass it as early as this week. The bill is expected to include provisions aimed at protecting stablecoin holders and regulating potential abuse for criminal or terrorist financing.
Previously, the bill had stalled over concerns about potential conflicts of interest, stemming from President Trump’s and his family’s involvement in the cryptocurrency. Trump launched his own meme coin in January, while the Trump family business supported the launch of a new stablecoin, USD1, in March. USD1 is pegged to US dollar deposits and backed by short-term US Treasuries.
David Sacks, the White House’s crypto tsar and a senior AI adviser to Trump, said in an interview with CNBC that the bill’s passage would boost demand for US government debt. “If we provide the legal clarity and legal framework for this, I think we could create trillions of dollars of demand for our Treasuries practically overnight,” he said.
Bitcoin outperforms traditional risk assets
Bitcoin has emerged as one of the top-performing risk assets this year, having risen nearly 20% year-to-date. In contrast, the S&P 500 has slipped 0.48%, while the Nasdaq has gained 2.7%. Meanwhile, gold, a traditional safe-haven asset, has climbed about 21% over the same period.
Wednesday’s US 20-year US government bond auction revealed tepid demand, pushing Treasury yields sharply higher. Bond yields move inversely to prices. The auction result underscored mounting investor concerns about Washington’s ballooning debt burden, amid upcoming Trump’s proposed tax bill. The market reaction also followed Moody’s decision to downgrade the US credit outlook last Friday. Surging bond yields triggered renewed selling pressure across US assets, with stocks, the dollar and Treasuries all falling on Wednesday.
Despite its impressive rally, Bitcoin remains a highly volatile financial asset with limited fundamental support, unlike stocks which are underpinned by corporate earnings.
