Bitcoin rose on Tuesday as the U.S. Senate advanced a major bill to regulate stablecoins, indicating increased institutional support for the cryptocurrency sector, while investors await a crucial vote on proposed tax cuts from President Donald Trump.

The world's largest cryptocurrency rose by 1.1% to $104,560 at 09:31 Saudi time, remaining close to its four-month high reached on Sunday.

Bitcoin jumped above $107,000 on Sunday with gains of about $2,500 in less than an hour during late Sunday trading, likely due to low weekend liquidity and algorithmic buying at key technical levels.

"With Bitcoin trading at $105,000, we may have reached a maturity point where trust, security, and liquidity in the largest cryptocurrency have made it a safe haven in the face of ongoing market uncertainty," said Peter Kozyakoff, co-founder and CEO of a global payments infrastructure provider.