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Bitcoin hit a record $120,000 on Monday as US lawmakers prepared to vote in law this week to make America the world’s “crypto capital.”
The world’s largest cryptocurrency rose 2.8% to $122,404, earning more than 10% in the past week, extending the ferocious rally since Donald Trump’s election victory.
Next week, Republican-controlled House lawmakers will discuss Genius Law, the clear conduct of digital asset markets, and the anti-CBDC surveillance national law.
The law covers everything from issuing corporate stability to sector regulation, but investors said passing of the bill would help push cryptocurrencies further into the mainstream of finance.
“The most appealing thing for capital allocators is that they have a certain degree of clarity,” said Tim Chen, head of global strategy at financial services firm Mantle.
Bitcoin’s Renaissance comes within three years when the collapse of Crypto Exchange FTX sent the price of digital currency to $16,000, raising doubts about the future.
But Trump’s return to the White House has energized the sector, with the president pledging to turn the US into a “global Bitcoin superpower” and set up cryptocurrency supporters in several key jobs.
At the start of what he called “Crypto Week,” French Hill, chairman of the French Financial Services Committee, said:
The US Senate has already approved the Genius Act, a bill that will allow private companies to issue Stablecoins. This is a type of cryptocurrency that is fixed in assets such as the US dollar.
The Clarity Act establishes a regulatory framework for digital assets that “establish a clear line” between the Securities and Exchange Commission and the Commodity Futures Trading Commission for the regulation of digital assets.
The anti-CBDC surveillance national law would prohibit the Federal Reserve from issuing central banks’ digital currencies.
Bitcoin rally is being turbocharged by increasing companies to invest in cryptocurrency and support stock prices.
“The public companies with Bitcoin on their balance sheet and fresh capital raises will likely have foot in this move as they will have to continue purchasing to maintain Treasury exposure.”
The greater clarity of regulations will only increase trends and increase “the arrival of a wave of capital and founders,” Mantle Chen said. “That means the US is open for business.”
Luci, the trading manager for Auros, a digitally-focused market production company, said this month that the aisle of Trump’s “big beautiful bill” becoming law also contributed to the rally.
“This sentence has been interpreted by many market participants as a green light to buy everything. You can see it across multiple asset classes,” he said.
