Bitcoin Hits Record High Amid Rising Investor Optimism Ahead of US Crypto Legislation
Bitcoin surged to a new all-time high of $117,333.32 on Friday, as crypto investors looked ahead to a series of potentially groundbreaking legislative developments in the United States. The world’s largest cryptocurrency climbed 3.3% in a single day, taking its year-to-date gains to 26% and marking a nearly 41% rise over the past three months.
The market rally comes ahead of what is being dubbed “crypto week” in Washington, where the US House of Representatives is expected to vote on a package of bills aimed at shaping a long-awaited regulatory framework for the crypto industry. These developments are raising hopes of increased legitimacy and fresh institutional inflows into the digital asset sector.
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Among the most anticipated proposals is the Genius Act, which would create federal rules for stablecoins—digital tokens pegged to fiat currencies like the US dollar. The bill has received bipartisan support in the Senate and is expected to pass the House. It would require stablecoins to be backed by highly liquid assets such as cash and short-term Treasury bills, and would mandate monthly disclosures of reserve compositions by issuers.
Other key bills include the Clarity Act, which aims to establish clear definitions for when crypto tokens are classified as commodities versus securities, and the Anti-CBDC Surveillance State Act, which seeks to restrict government use of central bank digital currencies. If passed, these measures would expand the Commodity Futures Trading Commission’s oversight and potentially redefine the Securities and Exchange Commission’s role—an issue that has caused friction between crypto firms and regulators under previous administrations.
These legislative efforts have found a vocal supporter in former US President Donald Trump, who has declared himself the “crypto president” and vowed to reshape regulatory policy to favor the industry. Trump is also linked to crypto ventures such as World Liberty Financial, operated by his sons Eric and Don Jr., prompting some concerns about conflicts of interest. The White House has denied any ethical violations, stating Trump’s assets are held in a trust managed by his children.
The growing anticipation of policy clarity has not only driven Bitcoin higher but has also lifted the broader crypto market. Ether, the second-largest token, jumped 5.13%, while XRP and Solana rose 9.7% and 0.8%, respectively. The total market value of the crypto sector has now reached approximately $3.67 trillion, according to CoinMarketCap.
Investor sentiment was further supported by increased activity in crypto-related equities. US-listed cryptocurrency companies saw notable gains on Friday, with Strategy rising 1.9%, and crypto miners like Riot Platforms, Hut 8, and Mara Holdings advancing between 0.7% and 1.6%. Bitcoin exchange-traded funds have also seen strong and sustained inflows, contributing to price momentum, said Nicolai Sondergaard, a research analyst at Nansen.
Dan Coatsworth, investment analyst at AJ Bell, noted that investors are racing to secure positions ahead of the added publicity expected during crypto week. “The optics of legislative engagement alone are bullish,” added Jag Kooner, head of derivatives at crypto exchange Bitfinex.
However, some analysts are urging caution. While the optimism surrounding Bitcoin’s role as a financial asset grows, not all experts are convinced. “The regulatory backdrop has supported prices, and attention has turned to Bitcoin’s role in portfolios, with some likening it to digital gold. That label may be premature,” warned Dirk Willer, global head of macro strategy at Citi. Others pointed to the risk of short-term volatility and potential price pullbacks despite the positive sentiment.
Political opposition is also mounting. Democratic Senator Elizabeth Warren expressed concern that the proposed legislation could overly favor the crypto industry, calling it a potential “industry handout” that ignores risks to consumers and retail investors.
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