 "Representational image. Reuters")
The world’s most popular cryptocurrency, Bitcoin, on Wednesday (May 21) hit a record high, lifted by a surge of optimism over cryptocurrency legislation in the United States.
Bitcoin’s value climbed to an all-time peak of $109,499.80, surpassing its previous high set on January 20 when Donald Trump was sworn in as US president.
After languishing for several weeks amid tariff-related uncertainty, bitcoin’s price has been steadily climbing in May. In the past 30 days alone, the cryptocurrency’s value has soared over 25 per cent.
Optimism over regulations
The surge in the value of Bitcoin is primarily attributed to the enthusiasm around the GENIUS Act. The legislation, a major step toward formal oversight of the digital asset space, was advanced by the US Senate on Monday (May 19) after weeks of negotiations. The bill, which seeks to regulate stablecoins (cryptocurrencies pegged to assets like the US dollar) had initially been held up due to Democratic concerns about the Trump family’s alleged involvement in cryptocurrency ventures.
If passed, the GENIUS Act would finally offer long-sought regulatory clarity for stablecoin issuers. It would also reassure stakeholders of the US administrationʼs commitment to engaging with blockchain technologies.
Other factors behind the surge
In addition to the optimism about the fate of the legislation, another potential reason that Bitcoin rallied could be that JPMorgan CEO Jamie Dimon, a well-known crypto skeptic, said clients of the bank can now buy bitcoin.
Plus, earlier in May, American cryptocurrency exchange Coinbase joined the benchmark S&P 500 stock market index. The move received praise from Wall Street as a watershed moment for the crypto industry.
The digital currency has also been buoyed by a more favourable macroeconomic environment, as investors’ appetite for riskier assets has returned following an easing of tensions between the US and its key trading partners.
Impact Shorts
More ShortsThe digital currency is created – or “mined” – as a reward when powerful computers solve complex problems to validate transactions made on a meddle-proof register known as the blockchain.
With inputs from agencies