Bitcoin breached US$120,000 for the first time, with investor enthusiasm showing few signs of dimming, as the US House of Representatives prepares to consider key industry legislation during its “Crypto Week” starting Monday.
The cryptocurrency bellwether rose as much as 3.4 per cent to US$123,205 as of 9.10am in London, as digital assets staged a broad advance. Ether, the second-largest token, also gained, along with a host of smaller coins. The cryptocurrency gains came as stock markets across Europe retreated.
After surging on the election of Donald Trump to a second US presidential term, bitcoin had settled into a pattern of fluctuating on either side of US$100,000 for several months.
Concerns about Trump’s political and economic policies had helped to temper optimism over the pro-cryptocurrency agenda of his administration. Now, with other risk assets such as US stocks back around record highs, bitcoin has also resumed its push higher.
Progress on crucial digital asset legislation is adding fresh fuel to the rally. The House will debate and possibly vote this week on the Clarity Act, the Anti-CBDC Surveillance State Act and the US Senate’s stablecoin package, the Genius Act, as Republicans move to advance Trump’s cryptocurrency-friendly agenda.
The prospect of a clear US regulatory framework, along with bitcoin’s steady advance in the face of Trump’s chaotic trade policy, has bolstered confidence in the asset class among institutional investors.
