Bitcoin’s record-breaking price surge to over $110,000 is attributed to a mix of regulatory adoption and fears about the US dollar’s value amid high government spending. The move comes as investors seek alternatives to the US dollar due to rising debt yields.
The price of bitcoin has surged by 40% since President Donald Trump’s presidential election in November, despite concerns over his involvement with cryptocurrency. Critics argue that Trump’s influence over the industry poses conflict-of-interest issues and risks endangering consumers and the wider economy.
A recent Senate vote advanced the GENIUS Act, a bill aimed at regulating stablecoins, a type of cryptocurrency pegged to the value of another asset. The measure could allow such coins to become mainstream tools for digital payments if enacted, potentially attracting more investment in the industry.
However, critics say the bill fails to address concerns about conflict-of-interest and may put consumers and the economy at risk due to weak regulations. Trump has denied any wrongdoing involving his crypto ventures.
The record high also coincides with a spike in Treasury yields amid deficit concerns centered on a domestic policy bill passed by the US House. Investors may seek out alternatives to the US dollar as debt yields face upward pressure, contributing to bitcoin’s surge.
Industry experts attribute the recent rise in bitcoin’s price to a combination of regulatory adoption and fear for the dollar. “I suspect it’s a mix of regulatory adoption and fear for the dollar given the expectation of high government spending,” said Bryan Armour, director of passive strategies research at Morningstar.
Source: https://abcnews.go.com/Business/bitcoin-hits-record-high/story?id=122068331