Cryptocurrency hit a new high as Bitcoin broke through the 112,000 USD barrier for the first time ever. - Digital currency Bitcoin hits $112,000 milestone for the initial occasion.
Bitcoin surpasses $112,000 for the first time, buoyed by potential US regulatory relaxation
The world's oldest and most well-known cryptocurrency, Bitcoin, has reached a new peak of $112,000. Market analyst Timo Emden, commenting on the milestone, suggested that the ongoing record chase could be driven by the prospect of less restrictive regulations on crypto assets in the United States.
Emden explained that a draft for the regulation of crypto assets is currently under debate in the US Senate, even amidst economic uncertainties, indicating the high importance of Bitcoin and other digital assets under the leadership of US President Donald Trump. The rally might continue towards the $120,000 mark, according to Emden, but the elimination of regulatory hurdles also brings potential risks, he cautioned.
Eric Demuth, CEO and co-founder of the crypto exchange Bitpanda, described Bitcoin as no longer a niche asset. He considered the all-time high to be the groundwork for future growth, partly attributable to the strategic focus of the US on crypto and digital assets in its financial and economic policy.
On Wednesday, Bitcoin surpassed its previous record high from January, propelled by expectations of easing crypto regulations in the US. Experts point to the ongoing discussions in the US Senate regarding crypto currency regulation, with the hope that a corresponding bill might be passed this week.
Trump is known to be supportive of crypto currencies. Since his election as US President in November 2016, the Bitcoin price has risen by around 60 percent. The US President's administration has historically taken a business-friendly stance towards cryptocurrencies. However, a trade conflict with China triggered by the US government under Trump caused a brief dip in Bitcoin's price to around $74,000 in April. This decline was subsequently reversed by recent progress in negotiations between Beijing and the United States.
The Bitcoin currently holds a total valuation of $2.2 trillion and leads the crypto currency market. According to data from CoinMarketCap, the crypto market has a market cap of approximately $3.5 trillion.
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- The recent advancement in the bilateral discussions between the US Senate and the House of Representatives suggests a possible alignment on stablecoin regulation in the near future.
- Such alignment could pave the way for broader crypto-related legislation in the US, potentially bringing more regulatory clarity to the crypto market, including Bitcoin.
- Enhanced regulatory clarity and legitimacy, as well as increased institutional investment, could contribute to the long-term growth and stability of the Bitcoin market.
- The role of stablecoins as entry and exit points for Bitcoin transactions also underscores their importance in the broader crypto market, making their regulatory framework a crucial factor in the development of the Bitcoin ecosystem.
- The potential US regulatory relaxation on crypto assets, as indicated by the ongoing discussions in the Senate, could provide an opportunity for institutional investment in Bitcoin, given the high value and importance of the European Union's digital assets.
- As regulatory clarity in the US matures and stablecoins gain legitimacy, there might be increased chances for European Union countries to invest in technology and finance, further contributing to the widespread adoption and growth of Bitcoin and other digital assets.
