Bitcoin reaches record high – hope for crypto easing in the USA!

Bitcoin reaches record high – hope for crypto easing in the USA!

Bitcoin reached a new record high of $109,500 on the Bitstamp trading platform on May 21, 2025. This remarkable event is associated with hopes of an imminent easing of crypto regulation in the US, which is currently being debated in the US Senate. Market analyst Timo Emden of Emden Research highlights that demand for Bitcoin has increased significantly, supported by inflows into exchange-traded Bitcoin ETFs.

Bitcoin's rise above its previous record high of over $109,300, reached during Donald Trump's inauguration, is a sign of growing investor confidence. Trump, who is considered a supporter of cryptocurrencies, had promised less strict regulation and the creation of a government Bitcoin reserve. This leads to an appetite for risk among investors, especially in the context of the possible easing of the trade dispute between the USA and China. Progress in negotiations ended a previous period of weakness that saw the price of Bitcoin fall to around $74,000 after the trade conflict with China escalated.

Regulation in focus

In parallel with these developments, the US Senate on Monday advanced a bill to regulate cryptocurrencies, the GENIUS Act, by a bipartisan vote of 66-32. The bill aims to create a regulatory framework for stablecoin issuers pegged to fiat currencies. Sixteen Democrats voted with the majority of Republicans, while two Republicans voted against the bill. To advance to a final vote in the Senate, the bill needed support of 60 votes. NBC News reports that an agreement between a group of bipartisan negotiators secured Democratic support.

The changes to the bill included new consumer protections and restrictions on tech companies issuing stablecoins. It will also include a provision prohibiting members of Congress and high-ranking government officials from issuing stablecoin products while in office. However, some Democrats, such as Elizabeth Warren, expressed concerns about the bill's effectiveness in preventing corruption. Warren and other Democrats have also introduced additional bills to regulate the Trump family's crypto businesses.

Outlook and market development

The GENIUS Act could potentially face opposition in the House of Representatives as there is another bill there to regulate stablecoin issuers. However, cryptocurrency advocates argue that the bill would help Americans make payments faster and easier. Critics, on the other hand, emphasize the challenges associated with the high energy consumption and the strong price fluctuations of cryptocurrencies.

Overall, the current situation shows how dynamic the cryptocurrency market is and how closely it is linked to developments in legislation. Expectations of regulatory easing could continue to drive rising prices and growing adoption of Bitcoin and other cryptocurrencies. The Süddeutsche Zeitung reports that Bitcoin has gained around 50 percent since Trump's election in November. The regulation is expected to be passed next week, which could provide further impetus for the market.