Bitcoin Surges 10% to New All-Time High of 110,000 USD

Bitcoin surged past the 110,000 USD per coin threshold on Thursday morning, marking a new all-time high. This surge propelled Bitcoin's total market capitalization above 2.1 trillion USD, securing its position as the fifth-largest asset by market value globally, trailing only gold, Microsoft, Nvidia, and Apple. Following a brief dip, Bitcoin's price rebounded to 110,006.30 USD per coin.

Bitcoin's price has experienced significant volatility since late last year. Initially, favorable statements from Trump during his election campaign boosted the cryptocurrency, pushing its price to a new high of 100,000 USD on December 5. However, the market faced a downturn following Trump's inauguration, with Bitcoin's price briefly falling below 80,000 USD in early April due to trade tensions and regulatory uncertainties.

Several factors contributed to Bitcoin's recent surge. The easing of trade tensions between the United States and China, coupled with Moody's downgrading of the U.S. sovereign debt rating, prompted investors to seek alternative investments to the dollar. Additionally, the improving regulatory outlook and heightened risk aversion, driven by the overnight "stock-bond-currency triple whammy" in the U.S., further fueled Bitcoin's rise.

Sean Farrell, the head of digital asset strategy at an investment firm, noted that the market has shifted to a "buy the dip" mentality, contrasting with the "sell the dip" approach observed a few months ago. This shift reflects growing confidence in Bitcoin's long-term prospects.

Prior to Bitcoin's record-breaking performance, the Senate achieved a critical procedural victory on Monday evening for a bill aimed at regulating stablecoins. The bill, known as the GENIUS Act, is expected to undergo final voting this week. A government official expressed optimism that the legislation would pass with strong bipartisan support, potentially unlocking significant demand for U.S. Treasury bonds.

The passage of the stablecoin bill is seen as a positive indicator for broader legislative progress in the cryptocurrency sector. Farrell commented that the bill's approval could pave the way for more comprehensive legislation covering various aspects of the cryptocurrency market, including the potential establishment of strategic Bitcoin reserves.

The cryptocurrency industry has seen increasing support from institutional investors and regulatory bodies. The appointment of a prominent cryptocurrency advocate as the chairman of the Securities and Exchange Commission (SEC) has been a significant development. The CEO of a major cryptocurrency investment company highlighted the industry's transformation from being shunned to being embraced by regulatory authorities.

Coinbase Global, the largest cryptocurrency exchange in the United States, was added to the S&P 500 index on Monday, marking a symbolic milestone for the industry. Additionally, more companies are adding Bitcoin to their balance sheets, following the lead of MicroStrategy, the largest corporate holder of Bitcoin. An analyst estimated that approximately 80 global companies have adopted the "Bitcoin standard," holding around 3.4% of the total Bitcoin supply. The analyst predicts that Bitcoin's price could reach 200,000 USD by the end of the year.