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Bitcoin hit a record high on Wednesday as growing industry optimism that the US will shortly agree its first regulations for digital assets spurred fresh enthusiasm for cryptocurrencies.
The price of the token rose to as much as $109,760, surpassing the previous high of $109,000 set in January and extending its rally of the past month.
Lawmakers in Washington are closing in on agreeing rules that will provide a regulatory framework for stablecoins, a form of digital dollar widely used for payments and trading in crypto markets. The tokens aim to maintain a steady value against the dollar but sit outside the regulated banking system.
The price of bitcoin has climbed by more than one-third in the past month as fears over the impact of US President Donald Trump’s aggressive tariffs policy have eased. More than $3.6bn has flowed into US exchange traded funds that track the price of bitcoin this month, the biggest inflow since January, according to data provider SoSoValue.com.
Bitcoin’s rise also fuelled gains for other cryptocurrencies. Ethereum, the second-largest cryptocurrency by notional value, rose 1.5 per cent to $2,548 and Solana was up 1.7 per cent to $171, although both remain well off their record highs.
Bitcoin’s fresh high “is a clear signal yet that this crypto bull market has further room to run”, said Thomas Perfumo, global economist at crypto exchange Kraken.
Perfumo cited a “feedback loop” from stronger performance in public equity markets, flows into ETFs and continued purchases from corporate buyers such as Strategy, the largest publicly listed bitcoin holder.
“Unless that trifecta of tailwinds falters, dip-buyers are likely to set the tone and today’s record print is evidence of that,” he added.
In recent days lawmakers in Washington have pushed forward in Congress a bill, known as the Genius Act, that will set down the first US regulations for stablecoins.
Investment bank Standard Chartered estimated the rules could expand the stablecoin market from its current notional value of $240bn to $2tn by the end of 2028, with most of the reserves that back stablecoins likely to be held in US Treasuries.
The majority of the Senate has voted in favour of the draft, although influential Democrat politicians such as senator Elizabeth Warren have warned that it does not sufficiently protect consumers and poses a potential threat to financial stability. The bill will require approval from both houses before Trump can sign it into law.
Bitcoin prices have also been supported in recent weeks by companies purchasing the cryptocurrency for their corporate treasuries, including Michael Saylor’s Strategy and 21, a bitcoin acquisition vehicle set up by Cantor Equity Partners and backed by SoftBank and stablecoin operator Tether.
