Bitcoin hits a new record high, breaking through $110,000, and US stablecoin legislation makes progress

Source:** Wall Street Insights  

Early in the Asian trading session on Thursday, Bitcoin surged above the $110,000 mark, breaking the all-time high set on January 20 this year when Trump took office, and hitting a new historical high, with an intraday gain of over 2.7%.  

The significant strength of Bitcoin is mainly driven by the enthusiastic participation of enterprises and adoption by Wall Street, as well as progress in U.S. stablecoin legislation, which has made investors optimistic about U.S. regulatory policies.  

Looking at the longer term, the price of Bitcoin has generally risen steadily since May, with a nearly 16% increase so far this month. Bitcoin has risen about 17% year-to-date, outperforming other risky assets such as U.S. stocks.  

Although gold has performed strongly, Bitcoin has outperformed gold since the U.S. presidential election:  

Other cryptocurrencies such as Ethereum, Ripple, and Solana also rose during the session. When Bitcoin hit a new high, the top ten digital currencies by market capitalization all recorded gains in 24 hours:  

Bitcoin's new high has driven the rise of cryptocurrency concept stocks/blockchain concept stocks. During Wednesday's U.S. stock trading session:  

- CRPT rose 14.52%,  

- DAPP rose 10.8%,  

- CleanSpark rose over 8.3%,  

- BTC Digital rose about 6.5%,  

- The ADR of Ninth City rose over 5.8%,  

- Galaxy Digital, which has just gone public directly in the U.S., rose over 5.6%,  

- MARA Holdings rose over 4.7%,  

- TeraWulf rose about 4.1%,  

- The ADR of EBANG International rose over 3.6%,  

- ProShares rose over 3.2%,  

- Applied Digital rose 2.9%.  

However, "Bitcoin heavyholder" Strategy (MSTR, formerly MicroStrategy) rose only 0.9%, performing far behind others.  

**Stablecoin Bill**  

Bitcoin's record high comes as progress is made in U.S. stablecoin legislation, which has sparked hopes for regulatory clarity during President Trump's term:  

In recent weeks, due to regulatory positives, including the U.S. Senate pushing forward the stablecoin bill and some Democratic lawmakers withdrawing their opposition on Monday, Bitcoin and the entire crypto market have continued to rebound.  

The stablecoin regulatory bill supported by the crypto industry is now ready for debate in the U.S. Senate, and bipartisan lawmakers hope to push it through as soon as possible, possibly as early as this week.  

The provisions of the proposed bill have been revised to include stricter anti-money laundering regulations, restrictions on issuers and tech companies outside the U.S., and enhanced consumer protection. The new bill will also ensure that issuers in the U.S. and those outside face the same rules.  

Galaxy Digital CEO Michael Novogratz said on Wednesday: "This is a shift in regulatory attitudes from Gary Gensler and the U.S. Securities and Exchange Commission (SEC) to the Trump administration. The Trump administration has accepted our industry, which has unleashed investment enthusiasm."  

Just as Bitcoin hit a new all-time high, Trump is preparing to have dinner with the largest holders of his issued memecoin at a golf club outside Washington on Thursday. However, this event has raised concerns that it provides access through transaction methods that directly benefit the president, and has drawn criticism regarding potential conflicts of interest.  

**Is Bitcoin a Safe Haven?**  

Previously, during the financial market turmoil caused by Trump's tariffs, some market participants regarded Bitcoin as a safe haven.  

Recently, due to the smooth progress of U.S. budget negotiations, which has brought the growth of deficit spending into focus, the narrative of "Bitcoin as a safe haven" has intensified:  

"When the U.S. is burdened with such debt, the situation is really very difficult. You can see the trend of long-term interest rates, with sell-offs across the yield curve and pressure on the dollar. This is good news for Bitcoin and crypto assets."  

**Corporate Embrace of Bitcoin**  

The excellent performance of Bitcoin is also driven by the active influx of enterprises, including strong demand represented by Michael Saylor's Strategy company and other enterprises attempting to emulate its Bitcoin purchase strategy:  

- Strategy has purchased over $50 billion worth of Bitcoin so far.  

- Bitcoin mining companies, a large number of smaller market capitalization companies, and new listed companies formed by crypto giants are providing investors with different forms of Bitcoin exposure through convertible bonds, preferred stocks, etc.  

- Cantor Fitzgerald LP's affiliate is collaborating with stablecoin issuer Tether Holdings SA and SoftBank Group to launch Twenty One Capital, a company mimicking Strategy's business model.  

- A subsidiary of Strive Enterprises Inc., co-founded by Vivek Ramaswamy, is merging with Nasdaq-listed Asset Entities to plan the establishment of a Bitcoin vault company.  

- GameStop, a struggling video game retailer that became a darling of retail investors during the meme stock craze in 2021, said in March this year that its board has approved a plan to adopt Bitcoin as a reserve asset, following Strategy's example.  

**Bitcoin Options Market and ETFs**  

According to Deribit data, options traders had already established bullish positions in Bitcoin earlier this week, with contracts at $110,000, $120,000, and $300,000 attracting the most attention, i.e., having the largest open interest, and these contracts will expire on June 27. According to Amberdata, demand for short-term call options with expiration dates before the end of June and strike prices above $110,000 has surged in the past 24 hours.  

According to Coinglass data, during this breakout, the liquidation of long and short positions in crypto assets remained at a moderate level, approximately $200 million in the past 24 hours.  

The open interest in Bitcoin futures provided by the Chicago Mercantile Exchange (CME) has rebounded by 23% from this year's low in April. At the same time, investors have poured about $3.6 billion into a series of U.S. Bitcoin ETFs in May.  

The inflow of funds into Bitcoin ETFs continues to increase:  

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