Thought Leadership
Bitcoin has climbed to a record high on hopes of an easing of crypto regulation in the US. The oldest and best-known digital currency rose to 109,500 US dollars on the Bitstamp trading platform, its highest level ever.
The market referred to a draft for the regulation of cryptocurrencies that is currently being debated in the US Senate. It is hoped that a corresponding regulation will be passed in the course of the week.
With the current price surge, Bitcoin has surpassed its previous record high of just over USD 109,300, which it reached in January at the time of Donald Trump’s inauguration. Even back then, hopes of less regulation by the US president, who was seen as crypto-friendly, had already acted as a price driver. In the meantime, the market is again speculating more strongly that the US government could possibly relax regulation.
Also hope for further easing in the trade dispute
In addition, hopes of a further easing of the trade dispute between the US and China led to greater risk appetite among investors. According to analyst Timo Emden from Emden Research, this also led to increased demand for Bitcoin. He also pointed to inflows into exchange-traded Bitcoin ETFs.
Since Trump’s election last November, Bitcoin has risen by around 50%. The US president is considered a supporter of cryptocurrencies and had promised less regulation and a state Bitcoin reserve during the election campaign.
In April, however, an escalation in the trade conflict with China triggered by the US government under Trump pushed the price of Bitcoin back down sharply at times to around USD 74,000. However, the latest progress in the negotiations between Beijing and the United States put an end to this period of weakness.
Supporters of the cryptocurrency see Bitcoin as a kind of digital gold and, at least in the long term, as protection against inflation, partly because only a maximum of 21 million virtual coins can be created. Critics complain, among other things, about the high energy consumption required to operate the Bitcoin system and point to high price fluctuations.
dpa
