Bitcoin Surges 90% Year-to-Date Amid US Crypto Legislation Push

Bitcoin (BTC) reached an unprecedented high on Monday, surpassing $123,000 for the first time. This surge marks a 90% increase year-to-date, with a 15% rise over the past month. The upward trend coincides with the US House of Representatives’ “crypto week,” which focuses on legislation aimed at reducing regulatory barriers for the cryptocurrency sector.

The GENIUS Act, a key piece of legislation, seeks to establish regulatory frameworks for stablecoins. Proponents argue that it will enhance consumer protections and facilitate the entry of traditional financial institutions into the digital currency market. However, critics contend that the bill may not adequately safeguard consumers or prevent illicit trading activities involving stablecoins.

In addition to the GENIUS Act, the House will debate measures to clarify the federal government’s regulatory approach to cryptocurrencies and proposals that could prevent the Federal Reserve from issuing its own digital currency. This legislative push reflects a series of favorable developments for the crypto industry since November. Since then, Bitcoin’s price has surged nearly 80%.

Bryan Armour, director of passive strategies research at Morningstar, suggests that this legislative push signals a continuation of supportive policies under the Trump administration. However, Trump’s involvement in the cryptocurrency space has raised concerns about potential conflicts of interest. For instance, his backing of World Liberty Financial’s stablecoin, USD1, has led to significant investments in major exchanges, which critics say creates opportunities for Trump’s business to profit.

Despite these concerns, Trump has denied any wrongdoing, and a White House spokesperson has stated that his financial assets are managed in a trust to avoid conflicts. The recent surge in Bitcoin prices has also been fueled by the US approval of Bitcoin exchange-traded funds (ETFs) last year. These investment vehicles have proven to be successful, with record-breaking amounts of capital moving into them.

The overall asset value of Bitcoin ETFs has reached a record high of over $158 billion, driven by a wave of investments that included over a billion dollars flowing into these funds on consecutive days last week. Nikhil Bhatia, a finance professor at the University of Southern California, noted that the approval of Bitcoin ETFs has contributed significantly to institutional adoption of Bitcoin, signaling a return to a bullish market sentiment.

As of this writing, BTC’s price has retraced back to the $117,000 level, 4.3% below its recently achieved all-time high. The surge in Bitcoin prices reflects a broader trend of increasing institutional interest and regulatory clarity in the cryptocurrency market. The legislative debates and the approval of Bitcoin ETFs are expected to continue driving the market’s bullish momentum.