The price of Bitcoin surpassed $120,000 for the first time late on Sunday, marking a significant milestone for the leading cryptocurrency. This surge follows a notable rally that has seen Bitcoin and other major tokens gain traction in recent weeks, fueled by investor optimism and regulatory developments.
Bitcoin breached the $120,000 threshold at approximately 11:42 p.m. EDT on Sunday. Since the beginning of the year, the cryptocurrency’s price has increased by over 28%. After experiencing a dip to just over $75,000 in April, Bitcoin’s value rebounded in May, reaching new heights amid anticipation surrounding the Senate’s consideration of the GENIUS Act.
The GENIUS Act, which proposes the first federal regulations for stablecoins, aims to reduce market volatility and enhance trust among investors. Stablecoins, which are cryptocurrency assets pegged to stable assets like the U.S. dollar, present a market potential of approximately $238 billion, according to data from CoinDesk. New provisions in the bill would mandate that companies issuing stablecoins maintain a reserve of assets and prioritize coin holders for reimbursement in the event of bankruptcy.
The latest surge in Bitcoin’s value comes in the wake of Donald Trump‘s election victory and his assertion that the U.S. should become the “crypto capital of the planet.” Trump has indicated plans to ease regulatory burdens on the cryptocurrency sector and has proposed establishing a digital asset stockpile akin to the country’s gold reserves.
Bitcoin’s rapid ascent follows its crossing of the $110,000 mark on May 21, 2024, taking just 53 days to reach the $120,000 milestone. In contrast, the journey from $100,000 to $110,000 took 167 days, although Bitcoin initially hit $80,000 on November 11, 2024, and surpassed $90,000 two days later.
The recent rally in Bitcoin coincides with robust performance in traditional markets, as both the Nasdaq and S&P 500 have reached all-time highs. Notably, Nvidia has become the first company to achieve a market capitalization of $4 trillion. Furthermore, significant investments in cryptocurrency have been made by major firms, including GameStop, which purchased $513 million in Bitcoin in May, and Trump Media and Technology Group, which plans to raise $2.5 billion to establish its own corporate Bitcoin reserve.
As Bitcoin continues to gain traction, the implications of the GENIUS Act and the overall market landscape could shape the future of cryptocurrency investment and regulation in the United States and beyond.
