Bitcoin rose 2.6% to $109,730 per unit, surpassing the previous record set following President Donald Trump's inauguration on January 20. Other cryptocurrencies, such as Ether and XRP, saw similar gains amid a wave of regulatory optimism.
Meanwhile, the dollar fell to a two-week low against the yen on Thursday, reflecting financial concerns and limited demand for US Treasury bonds as Trump attempts to pass a comprehensive spending and tax cut bill through Congress.
Bloomberg reported that the cryptocurrency market has witnessed a significant recovery in recent weeks, supported by a new regulatory bill proposed in the Senate after several Democratic members withdrew their opposition to it last Monday.
The Senate is expected to debate the bill this week, with support from lawmakers from both parties, amid hopes of its passage. The bill includes stricter provisions related to combating money laundering, regulating foreign currency issuers and technology companies, and enhancing consumer protections, subjecting all issuers to the same regulatory rules.
In a statement to Bloomberg, Michael Novogratz, founder and CEO of Galaxy Digital, said that this regulatory shift represents a clear shift from the SEC's approach under Gary Gensler to a more supportive stance from the Trump administration, which has contributed to market mobilization both within the United States and abroad.
Bitcoin is increasingly viewed by some investors as a safe haven amid market turmoil caused by the US administration's economic policies, particularly as budget negotiations in Congress continue to stall.
