Bitcoin Reaches Record High Above $116,000

Key Facts

• The price of bitcoin increased by more than 4% on the day, reaching just under $116,000 as of approximately 7:35 p.m. EDT, after briefly reaching a new record high of $116,626 earlier in the evening.

• This marks the first record for bitcoin since May 22, when the price reached just below $113,000 before declining over the following month.

• Other cryptocurrencies also experienced increases in the last 24 hours, including ethereum (up 7%), XRP (5.3%), Solana (4.3%), and dogecoin (6.2%).

• The House Committee on Financial Services, led by the GOP, announced that the week beginning July 14 would be designated as “Crypto Week.” During this period, the House will consider cryptocurrency-related legislation, such as the GENIUS Act, which the committee stated is intended to support the U.S. cryptocurrency sector.

• Recent major investments in cryptocurrency include GameStop purchasing approximately $513 million in bitcoin in May, and Trump Media and Technology Group announcing plans to raise $2.5 billion to establish a corporate bitcoin reserve.

What Is The GENIUS Act?

• The GENIUS Act, introduced in February by Sen. Bill Hagerty (R-Tenn.), proposes the first federal regulations for stablecoin issuers.

• Stablecoins are cryptocurrencies pegged to more stable assets, such as the U.S. dollar, to reduce volatility compared to other cryptocurrencies.

• Some analysts have suggested that the GENIUS Act could increase trust in stablecoins, a market valued at $238 billion according to CoinDesk.

• The bill was approved by the Senate in a 66-32 vote in May, with 16 Democrats and two Republicans voting against it.

• The legislation would require stablecoin issuers to maintain a reserve of assets to back the cryptocurrency, a provision intended to protect consumers, though some legislators have expressed concerns about its effectiveness.

• The GENIUS Act also requires stablecoin issuers to prioritize repayment or reimbursement to coin holders if the companies declare bankruptcy.

Big Number

• Approximately $160 billion was added to the global cryptocurrency market value in the last 24 hours, increasing from $3.53 trillion to $3.69 trillion, according to CoinGecko.

Key Background

• Bitcoin has traded above $100,000 in recent months, with some investors maintaining positive expectations for cryptocurrency policies under President Donald Trump.

• The recent increase in bitcoin's price coincides with new closing records for the Nasdaq and S&P 500, and Nvidia reaching a $4 trillion valuation.

• House Republicans have reiterated calls for the U.S. to become a leading country in cryptocurrency, and following the recent presidential election, bitcoin surpassed $100,000 for the first time within a month of Election Day.

• Growth in bitcoin's value slowed in the months after the inauguration, before an announcement regarding the establishment of a U.S. digital asset reserve.

Further Reading

• Forbes: Trump Media’s $2.5 Billion Bitcoin Bet Mirrors White House Crypto Strategy
• Forbes: Bitcoin Hits All-Time High Of Over $109K Amid Crypto Rally