Bitcoin Breaks Records Amid Political Momentum
Bitcoin hit an all-time high early Thursday, surging past $111,000 during the Asian trading session. The milestone eclipses the previous peak of over $109,000, set during Donald Trump’s presidential inauguration in January.
The price rally is largely driven by renewed optimism surrounding the passage of the GENIUS Act, a long-anticipated bill that would create the first formal US regulatory framework for stablecoins under the Trump administration.
Legislation Clears Major Senate Hurdle
The GENIUS Act scored a crucial win this week as Senate Democrats dropped their opposition, allowing the bill to advance through a key procedural vote. Lawmakers are optimistic it could pass the full Senate within days.
The legislation aims to establish consumer protections for stablecoin holders and regulate potential misuse for illegal financing. These moves are seen as a major step in legitimizing the broader crypto sector in the US.
Trump’s Crypto Ties Fuel Controversy
The bill’s progress has not been without controversy. President Trump launched his own meme coin in January, followed by his family’s support of a dollar-pegged stablecoin, USD1, in March. Critics had expressed concerns over potential conflicts of interest.
Despite the controversy, the Trump administration’s crypto advisor David Sacks told CNBC the legislation could dramatically increase demand for US Treasuries. “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.
Institutions Rush to Join the Rally
Institutional adoption has been another major driver of Bitcoin’s latest rally. Michael Saylor’s firm, Strategy, announced on Monday it had added $765 million worth of Bitcoin, boosting its total holdings to over $63 billion.
Major financial players like JPMorgan Chase, Morgan Stanley, and BlackRock have also expanded their crypto offerings in recent months. “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.
Bitcoin Outshines Traditional Assets
Bitcoin’s performance has outpaced nearly all traditional risk assets this year. It is up nearly 20% year-to-date, while the S&P 500 has slipped 0.48% and the Nasdaq has gained just 2.7%. Gold, often considered a haven asset, has climbed roughly 21%.
This resurgence comes despite warnings over Bitcoin’s volatility and lack of intrinsic value. Unlike stocks supported by earnings or gold underpinned by tangible demand, Bitcoin’s price is primarily driven by sentiment and speculative flows.
Market Jitters Over US Debt and Yields
The rally unfolded in the shadow of increasing financial anxiety in Washington. Wednesday’s 20-year Treasury auction revealed weak demand, sending yields sharply higher and triggering a sell-off across stocks, the dollar, and bonds.
The disappointing auction results came just days after Moody’s downgraded the US credit outlook, citing mounting concerns over the nation’s debt load. Market volatility has also been amplified by Trump’s proposed tax legislation, which investors fear could further widen the deficit.
What Comes Next for Crypto Markets?
The combination of regulatory clarity and institutional momentum has created the perfect storm for Bitcoin’s price explosion. Still, analysts warn the market remains fragile, and any disruption in legislation or a reversal in sentiment could lead to sharp corrections.
With the GENIUS Act likely to become law soon and more institutions entering the space, all eyes are on how the crypto market will evolve through the summer. Investors are watching closely to see whether this marks a sustainable shift—or just another chapter in Bitcoin’s volatile history.
