Bitcoin has broken through the psychological barrier of $120,000, reaching a historic peak of $122,571. This is not only a symbolic moment for the world’s largest cryptocurrency, but also a clear signal that the market is beginning to price in potential political victories for the sector in the US.
The spotlight has been on the House of Representatives, which is debating a regulatory package for digital assets, including the Genius Act to clean up the stablecoin market. This is part of the so-called ‘crypto week’, announced in Washington, which could determine the future status of the cryptocurrency industry in the US financial system.
Interestingly, cryptocurrencies are not only gaining from legislative optimism. The rise is also influenced by Donald Trump’s return to the political game. His declarations of a “pro-crypto” approach contrast with the Biden administration’s reserve to date. The market seems to be pricing in a change of political course, which could favour the further development of cryptocurrency-based products such as ETFs.
Bitcoin has already gained 29% since the start of the year, dragging other currencies with it – Ether has topped US$3,000, while tokens such as XRP and Solana have also seen solid gains. The overall cryptocurrency market has reached US$3.81 trillion, according to CoinMarketCap data.
Increased interest can also be seen in Asian markets. Cryptocurrency ETFs in Hong Kong have seen record highs, which may suggest that investors – both institutional and retail – are increasingly treating cryptocurrencies as a fully-fledged asset class.
In the background, there is also growing interest from central banks and family offices, especially in Asia. If the trend continues, bitcoin may cease to be just a speculative asset and become a structural element of the global financial system.
For the cryptocurrency industry, the current moment is more than a simple price rally. It is a test of whether it will gain lasting recognition in the eyes of regulators – and voters.
