Bitcoin Price: The Top Reasons Why Crypto King Breaks the $11K Barrier for the First Time
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Bitcoin Price: The Top Reasons Why Crypto King Breaks the $11K Barrier for the First Time
Bitcoin Price in USD, News about Cryptocurrencies: As a wave of capital continues to pour into spot bitcoin ETFs, Bitcoin has hit yet another all-time high, breaking USD 118,000 for the first time on Friday. Meanwhile, US President Donald Trump’s crypto-friendly policies continue to spread throughout Washington.
CoinMarketCap data indicates that early Friday saw the trading price of bitcoin rise as high as USD 118,856. Although it has now dropped to roughly USD 117,300 at 12:30 PM ET, news agency PTI noted that it is still more than USD 7,400 higher than the price of the most popular cryptocurrency in the world a month ago and more than double that of this time last year.
Spot Bitcoin ETFs Drive Investment Surge
Following their inception last year, spot bitcoin ETFs made cryptocurrency investing more accessible, and analysts have recently seen record inflows. Additionally, the US dollar’s weakness and Trump’s administration’s support for digital currencies have contributed to the recent surge in the price of Bitcoin to previously unheard-of heights.
Senate Passes Stablecoin Regulation Bill
The first of what the sector hopes will be a series of initiatives to strengthen its credibility and reassure consumers was legislation that was enacted by the Senate last month that would regulate stablecoins, a type of cryptocurrency.
GENIUS Act Aims to Legitimize Stablecoins
The law, called the GENIUS Act, would create consumer protections and safeguards for stablecoins, a kind of cryptocurrency that is usually based on the US dollar. The phrase is an abbreviation for “Guiding and Establishing National Innovation for US Stablecoins.” Additionally, as part of Congress’s efforts to fortify the nation’s position in the cryptocurrency space, the House of Representatives will be debating this bill next week.
Crypto Industry’s Political Influence Grows
The fast-moving legislation comes on the heels of a 2024 campaign cycle in which the crypto industry ranked among the top political spenders in the country.
Once a skeptic about cryptocurrency, Trump turned into a strong advocate for the sector during his presidential campaign last year. Since then, he has taken steps to further grow his and his family’s cryptocurrency business. Trump Media & Technology Group announced earlier this week that it has submitted documentation to the Securities and Exchange Commission requesting authorization to introduce its “Crypto Blue Chip ETF” later this year.
The ascent of Bitcoin also comes against a broader backdrop of economic uncertainty, particularly the global unrest around Trump’s hefty and somewhat erratic new tariffs against major trading partners across the world.
Citi Analysts Stress Regulatory Hope
In a research insights post on Friday, Citi analysts stated, “Bitcoin has demonstrated resilience this year, rebounding in line with its macro exposures following tariff announcements.”
Once more, however, they pointed out that the Trump administration “has been positive for Bitcoin” generally and credited investments in spot ETFs and general adjustments to the outlook of U.S. regulation for the cryptocurrency’s current surge.
Bitcoin as Digital Gold: Is It Real or Just Hype?
Supporters of Bitcoin have frequently claimed that the cryptocurrency is comparable to “digital gold” and may serve as a hedge against volatility, but many people are still dubious of that claim. The price of Bitcoin has been shown to be influenced by broader market situations in the past.
Volatility Remains a Key Risk for Investors
Bitcoin temporarily fell below $75,000 in April as part of a larger sell-off that followed Trump’s massive “Liberation Day” tariff announcements. That marked the cryptocurrency’s lowest price since before Trump’s Election Day victory in November.
Even if the value of Bitcoin has subsequently increased dramatically, investors should keep in mind that it is still a very erratic and relatively new asset that has previously experienced sharp price swings. In summary, history demonstrates that you may lose cryptocurrency just as easily as you make it.
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