Editor's take: Thanks to Donald Trump's recent conversion to the cryptocurrency gospel, Bitcoin and other virtual tokens are experiencing massive price increases seemingly out of thin air. And Washington's upcoming rules could spread the blockchain gospel even further.
For the first time in its history, Bitcoin surpassed $120,000 on Monday. The virtual currency went as far as $123,153.22, Reuters reports, before experiencing a slight decrease to $122,000.
According to market analyst Tony Sycamore, Bitcoin's price is surging to unprecedented heights for several reasons. Institutional demand is stronger than ever, while Donald Trump is preparing yet another juicy gift for Wall Street and crypto speculators over the next few days. The president's enthusiastic support for virtual currencies is interesting, to say the least, because the US president was "not a fan" of Bitcoin just a few years ago.
Bitcoin price chart and fluctuation over the past 5 years
The Bitcoin market is currently going through some significant changes – and worrisome developments as well. Some unknown Bitcoin "whale" recently moved 80,000 BTC for the first time in 14 years, transferring around $8.6 billion worth of virtual currencies from eight different wallets. Furthermore, Bitcoin mining is now becoming increasingly unprofitable. Only the most resourceful miners can still hope to extract some financial value from the Bitcoin algorithm for the foreseeable future.
Sycamore highlights the strong position Bitcoin is holding right now after rallying for a few days. The currency could easily reach $125,000 soon after surging more than 60 percent since the election of "crypto-president" Donald Trump on November 5, 2024.
Needless to say, Bitcoin's stellar price is promoting a surge in other major cryptocurrencies as well. Reuters reports a five-month record for Ether, the second-biggest token on the market, which went as far as $3,059.60. Other currencies such as XRP and Solana jumped 3 percent.
CoinMarketCap data shows that the entire cryptocurrency market is currently valued at $3.81 trillion, and this could just be the beginning of something much bigger. The Trump administration recently declared the week starting on July 14 "crypto week," and the US Congress is expected to vote on important new rules for the crypto market over the next few days.
The most significant bill related to virtual currencies is the Guiding and Establishing National Innovation for US Stablecoins Act, which is expected to establish the first regulatory framework for stablecoins. Compared to Bitcoins and other "traditional" cryptocurrencies, stablecoins should be a more interesting asset for speculators and investors because they are supposed to be tied to a reference asset such as fiat money, commodities such as gold, and more.