Reports indicate that Bitcoin surged to a new peak valuation of $109,730 on Wednesday, May 21st. This rise is attributed, in part, to the U.S. Senate’s progress on a stablecoin bill, announced the preceding Monday, May 19th.
Earlier, the cryptocurrency’s value had touched its highest point around January 20th, during the inauguration of President Donald Trump. According to a Bloomberg report published Wednesday, this event spurred optimism regarding the clarification of crypto regulations.
The increase in Bitcoin’s value has also been fueled by investors seeking refuge from volatile markets, corporations accumulating the digital asset, and increased accessibility to Bitcoin investments, according to the same report.
Sources suggest the Senate is poised to debate the cryptocurrency-backed bill with a potential vote and possible passage later this week.
According to Michael Novogratz, founder and CEO of Galaxy Digital, in a Wednesday interview with Bloomberg TV, the shift in regulatory attitude from the previous SEC Chair Gary Gensler and the SEC to the current Trump administration, is pro cryptocurrency and “has freed up the animal spirits both here and abroad.”
On Monday, the Senate voted to advance the GENIUS Act, or Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 Act, the nation’s first potential stablecoin law, following weeks of legislative debate, reported by PYMNTS on Tuesday, May 20th.
Advertisement: Scroll to Continue
“Tonight’s vote is a welcome and long-overdue step toward asserting U.S. leadership in digital assets,” remarked Senate Banking Committee Chairman Sen. Tim Scott (R-S.C.) in a public statement. “I’m glad many of my Democratic colleagues have returned to the table and are supporting a bipartisan product they helped shape. By moving forward on the GENIUS Act, we are one step closer to delivering a regulatory framework that keeps innovation in America, protects consumers, and safeguards our national security.”
After hitting its previous record high during Trump’s inauguration in January, Bitcoin’s value experienced a decline of up to 30% in response to new tariffs causing market instability.
However, on May 8th, the price of Bitcoin climbed back above the $100,000 threshold, a first in the three months, driven by anticipation of reduced global tariff pressures following a new trade agreement.
Cosmo Jiang of Pantera Capital commented to Bloomberg, “It just speaks to the large amount of demand for digital assets in the industry, and especially bitcoin.”