Bitcoin News Today: Bitcoin Hits $123,000 All-Time High as Crypto Market Surges 60%

Bitcoin has reached a new all-time high this month, with the Federal Reserve facing a challenging scenario and traders preparing for the next significant move, which could occur as early as next week. The bitcoin price, which has doubled since its April lows, peaked at $123,000 per bitcoin this week. This substantial crypto rally has lifted the prices of ethereum, XRP, and other cryptocurrencies, resulting in a combined market capitalization of $4 trillion for the first time. This surge coincides with Elon Musk's confirmation of a significant development in the bitcoin ecosystem.

Amidst this rally, a new theory has emerged regarding the identity of bitcoin's mysterious creator, Satoshi Nakamoto, which is linked to XRP. Concurrently, U.S. President Donald Trump has predicted a "golden age" for crypto and the U.S. dollar, stating that they will become "stronger and bigger and better than ever before." This prediction comes as Trump signs the Genius Act stablecoin bill into law, marking a pivotal moment for the crypto industry.

During the White House signing ceremony, Trump emphasized the importance of the Genius Act, stating that it is a "giant step to cement American dominance of global finance and crypto technology." He also described the bill as a "massive validation" for crypto companies. The Genius Act requires companies issuing stablecoins to maintain fully-backed reserves of U.S. dollars or similarly liquid government-issued assets, such as bonds. Companies issuing more than $50 billion of a stablecoin will be required to complete annual audits.

The crypto market has seen significant growth, adding a combined $2 trillion since September last year. Bitcoin was trading at just over $50,000 per bitcoin in early August. This month, ethereum and Ripple’s XRP have experienced substantial gains, with ethereum increasing by 40% and XRP by 60%. Traders are betting that the passage of the Genius Act will enable the Trump administration to achieve its future crypto policy goals.

Next week, a report from Trump’s digital asset task force is expected to reveal plans for the U.S. bitcoin strategic reserve, which Trump ordered in March. The report may also include details about a crypto stockpile that includes ethereum, XRP, solana, and cardano. Additionally, the Senate is expected to begin considering the crypto market structure Clarity Act, with a deadline set by Senator Tim Scott, the chairman of the Senate Banking Committee, for September 30.

The Genius Act aims to establish clear rules for the digital asset industry, creating a functional regulatory framework. French Hill, the top Republican on the House financial services committee, described the legislation as a pivotal moment for American innovation and a critical step forward in protecting consumers and investors. The act also addresses the issue of traditional interest not being allowed to be paid out to those holding stablecoins, a point that Trump’s crypto czar David Sacks has previously expressed a desire to change.

Bo Hines, executive director of the president’s White House council of advisers on digital assets, highlighted the significance of the Genius Act in securing U.S. dollar dominance for decades to come. He stated that accessing U.S. capital markets will require the use of a dollar-backed stablecoin. The bitcoin price and crypto market surge has been welcomed by traders and analysts, with some predicting that momentum is building. Axel Rudolph, senior technical analyst at IG, noted that the total crypto market cap pushing past $4 trillion indicates a shift in sentiment across the space.