Bitcoin Holds Near Record Highs Amid US Debt Fears and Crypto Bill
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Bitcoin remains just below its all-time highs, trading flat today at $110,500 after peaking at $111,778 yesterday. The cryptocurrency has gained 18.5% since the start of the year and over 61% compared to May 2024, partly fueled by Donald Trump’s election and broader market trends.
Ongoing tensions between the US and China, alongside concerns over the US economy and debt—amplified by Moody’s downgrade last week—are driving institutional interest in Bitcoin as an alternative asset. Weak equity markets and rising Treasury yields have further supported its rally, with Bitcoin ETFs seeing strong inflows.
The crypto market also drew strength from Coinbase’s inclusion in the S&P 500 and a shift in stance from JP Morgan CEO Jamie Dimon, who announced the bank will now offer Bitcoin purchases to clients.
Adding momentum, the Trump administration has pushed forward crypto-friendly regulation. This week, the US Senate passed the first-ever cryptocurrency bill, regulating stablecoins. President Trump aims to sign it into law by August.
“A key catalyst was the Senate approval of the GENIUS Act, backed by 66 votes,” said Satish Patel, Investment Analyst at CoinShares. “It sets long-awaited federal standards for stablecoins, requiring 1:1 liquid reserves, AML compliance, and consumer protections—boosting investor confidence in clearer crypto regulation.”
Ongoing tensions between the US and China, alongside concerns over the US economy and debt—amplified by Moody’s downgrade last week—are driving institutional interest in Bitcoin as an alternative asset. Weak equity markets and rising Treasury yields have further supported its rally, with Bitcoin ETFs seeing strong inflows.
The crypto market also drew strength from Coinbase’s inclusion in the S&P 500 and a shift in stance from JP Morgan CEO Jamie Dimon, who announced the bank will now offer Bitcoin purchases to clients.
Adding momentum, the Trump administration has pushed forward crypto-friendly regulation. This week, the US Senate passed the first-ever cryptocurrency bill, regulating stablecoins. President Trump aims to sign it into law by August.
“A key catalyst was the Senate approval of the GENIUS Act, backed by 66 votes,” said Satish Patel, Investment Analyst at CoinShares. “It sets long-awaited federal standards for stablecoins, requiring 1:1 liquid reserves, AML compliance, and consumer protections—boosting investor confidence in clearer crypto regulation.”