Investing.com-- Bitcoin advanced to a new all-time high on Wednesday, after the U.S. Senate advanced the GENIUS Act, a significant stablecoin regulation bill, overcoming earlier legislative hurdles.
The world’s largest cryptocurrency rose nearly 4% to $109,439 as of 12:35 PM ET (16:35 GMT)
The new record trading level follows a consolidation phase after the prior high of $109,288 was touched in January.
Bitcoin near record high; trade worries, Fed uncertainty cap upside
The rally aligns with a broader surge in digital assets this month, driven by favorable policy shifts under President Donald Trump and a temporary thaw in trade relations between Washington and Beijing.
The stablecoin bill’s progression on Tuesday was seen as a major victory for the crypto industry, signaling a more supportive regulatory environment.
The bill is likely set for a Senate floor vote later this week, clearing which it will be sent to President Donald Trump’s office for approval.
Additionally, the Trump administration’s establishment of a Strategic Bitcoin Reserve in March, aimed at positioning the U.S. as a leader in digital assets, has further fueled market enthusiasm.
However, underlying tensions persist. China has strongly criticized new U.S. restrictions on Chinese AI chips, labeling the actions as "bullying" and vowing retaliation. Such disputes threaten to disrupt the fragile trade truce between the two nations.
Moreover, Federal Reserve officials on Tuesday indicated that rising tariffs could lead to sustained inflation, potentially delaying interest rate cuts. This "higher-for-longer" rate environment may temper risk appetite across financial markets.
Despite these challenges, Bitcoin’s resilience underscores its growing appeal among institutional investors and its perceived role as a hedge against geopolitical and economic uncertainties.
“Bitcoin remains on track to make the target of $120,000 over the coming 6-8 weeks. The price is being driven by institutions and "whale wallets" who are positioning themselves in the market, following companies like Microstrategy (NASDAQ:MSTR) and the various new co’s who are copying the Michael Saylor play," Stephen Wundke, Director of Strategy & Revenue at quantitative digital asset investment firm Algoz, told Investing.com.
"There may still be down days of note but the trend is definitely up," he added.
Separately, Rikisp, CEO of SwapX, a decentralized exchange built on Sonic, noted that Bitcoin’s recent rally to $108,000 "happened mainly because more Bitcoin is being managed by big investment funds, as Bitcoin under management by global ETPs has surged to new all-time highs."
"This isn’t just about buying pressure but it reflects a shift in sentiment. More investors, including major funds, are now treating Bitcoin as a long-term asset rather than just a speculative play," he continued.
Crypto price today: most altcoins gain; $TRUMP surges
Most altcoins also extended gains on Wednesday, in line with Bitcoin’s rise.
World no.2 crypto Ethereum rose 5% to $2,600.26.
World no. 3 crypto XRP climbed 3.9% to $2.42.
Solana gained over 2%, and Cardano added 4.9%, while Polygon edged 6.1% higher.
Among meme tokens, Dogecoin added 7.6%, while $TRUMP surged nearly 15%.
Ayushman Ojha and Vahid Karaahmetovic contributed to this report.