The crypto world is boiling! Bitcoin prices have taken another historic step, possibly becoming a 'doomsday hedge asset'…
In the context of progress in U.S. stablecoin legislation, market expectations for regulatory clarity during President Trump's term have risen. On Thursday, the price of Bitcoin, the world's largest cryptocurrency, surged by 2.7% at one point, setting a new historical high above $110,000. Bitcoin's previous historic peak was established when Trump took office on January 20.
Thanks to recent regulatory tailwinds, including progress in the stablecoin bill in the U.S. Senate after a group of Democrats dropped their objections on Monday, Bitcoin and the broader crypto market have seen gains in recent weeks. This industry-supported regulatory bill is now ready for debate in the Senate, with a bipartisan group hoping to pass it as early as this week.
"This is a shift in the way Gary Gensler and the U.S. Securities and Exchange Commission (SEC) handle things compared to the Trump administration, which embraced our industry," said Michael Novogratz, founder and CEO of Galaxy Digital, in an interview on Wednesday. "This liberates the 'animal spirits' in domestic and international markets."
The terms of the proposed legislation have been revised to include stricter restrictions on money laundering, foreign issuers, and tech companies, as well as improvements in consumer protection. It will also ensure that both domestic and foreign issuers are subject to the same rules.
During the financial market turmoil triggered by the trade tariffs introduced by the Trump administration, Bitcoin was seen by some market participants as a safe-haven asset. This narrative has gained more attention recently as the deadlock in U.S. budget negotiations has focused attention on the growth of deficit spending.
"When a country has such a huge debt, we are in a very difficult position, and the dollar is under pressure," said Novogratz. "This is also a positive for Bitcoin and crypto assets."
Earlier this week, options traders have established bullish positions on Bitcoin, with the highest number of open contracts for call options betting that Bitcoin will rise to $110,000, $120,000, and $300,000 expiring on June 27. According to Amberdata, demand for short-term call options expiring before late June with strike prices above $110,000 surged in the past 24 hours.
According to data compiled by Coinglass, despite the breakthrough in crypto assets, the forced liquidation volume of both long and short bets remained moderate in the past 24 hours, at around $200 million.
Bitcoin futures open interest held by the Chicago Mercantile Exchange (CME) has rebounded 23% from its year-to-date low in April, while investors have injected about $3.6 billion into approximately 12 Bitcoin exchange-traded funds (ETFs) in the U.S. so far in May.
So far this year, Bitcoin has risen by about 14%, outperforming other risk assets like U.S. stocks, with the Nasdaq 100 index down about 2% since last December.
Factors driving this outstanding performance include a surge in demand from Michael Saylor's Strategy company (formerly MicroStrategy) and other companies mimicking its Bitcoin purchasing strategy. This former software manufacturer has accumulated over $50 billion worth of Bitcoin.
Bitcoin miners, a number of lesser-known small companies, and newly public companies established by heavyweights in the crypto industry are offering a range of products from convertible bonds to preferred shares, providing various forms of Bitcoin exposure for investors. An affiliate of Cantor Fitzgerald LP is collaborating with stablecoin issuer Tether Holdings SA and SoftBank Group to launch Twenty One Capital Inc., a company that mimics the Strategy business model.
A subsidiary of Strive Enterprises Inc., co-founded by Vivek Ramaswamy, is merging with Nasdaq-listed AssetEntities Inc. to form a Bitcoin treasury company.
This record surge comes as Trump prepares to host a dinner at his golf club in the Washington suburbs, meeting with his largest holders of meme coins. This event has raised ethical concerns among experts who believe it provides some individuals with direct access to the president and has prompted criticism over potential conflicts of interest.
