Investing.com-- Bitcoin climbed on Tuesday as the U.S. Senate advanced a key stablecoin regulation bill, signaling increased institutional support for the cryptocurrency sector, while investors awaited a crucial vote on President Donald Trump’s proposed tax cuts.
The world’s largest cryptocurrency rose 1.1% to $104,560 as of 09:31 ET (13:31 GMT), remaining near a four-month high reached on Sunday.
Bitcoin jumped over $107,000 on Sunday with gains of around $2,500 in under an hour in late Sunday trading, likely driven by thin weekend liquidity and algorithmic buying at key technical levels.
“With Bitcoin trading at $105,000, we may have reached a point of maturity in which the trust, security and liquidity of the biggest cryptocurrency have made it a sanctuary in the face of continued market uncertainty," Petr Kozyakov, co-founder and CEO of global payments infrastructure provider Mercuryo, told Investing.com.
As BTC evolves into a "fully-fledged institutional asset, TradFi may now be looking to obtain further exposure to the nascent DeFi space where new protocols and forms of finance continue to emerge," he added.
Stablecoin bill clears Senate hurdle, floor vote looms
On Monday night, the Senate voted 66-32 to move forward with the GENIUS Act, a bill aimed at establishing a federal framework for stablecoin regulation.
The legislation had previously stalled due to Democratic opposition but gained momentum after concerns were addressed.
The bill’s progress is seen as a positive development for the crypto industry, which has been seeking clearer regulatory guidelines.
The bill is likely set for a Senate floor vote later this week, clearing which it will be sent to President Donald Trump’s office for approval.
Bitcoin’s recent performance has been bolstered by expectations of favorable regulatory developments and increased adoption.
Analysts predict that if current trends continue, the cryptocurrency could reach new highs by the end of the year.
The token had surged more than 11% this month, helped by optimism over easing trade tensions between the world’s two largest economies.
Markets await U.S. House vote on Trump’s tax cut bill
Meanwhile, investors are closely watching the U.S. House of Representatives, where a vote is expected later in the day on President Trump’s tax cut proposal.
Critics warn that the bill may worsen the U.S. fiscal deficit and reduce federal revenue, especially as the deficit is already at historically high levels.
This comes after the global ratings agency Moody’s downgraded its investment grade rating on the U.S. by a notch over the country’s growing $36 trillion debt.
Data shows that Bitcoin is attracting wider buyer base: StanChart
Global bank Standard Chartered says fresh U.S. regulatory filings reinforce its view that Bitcoin is attracting a broader base of institutional investors. The bank sees this trend as supporting its long-standing projection that Bitcoin could reach $500,000 before the end of U.S. President Donald Trump’s term.
“SEC 13F data for Q1 supports our thesis that Bitcoin is attracting a wider range of buyers,” wrote Geoff Kendrick, head of Digital Assets Research at Standard Chartered.
While spot Bitcoin ETF holdings declined in the first quarter, Kendrick pointed out a notable rise in indirect exposure through MicroStrategy (NASDAQ:MSTR). Sovereign entities including Norway’s Government Pension Fund, the Swiss National Bank, and South Korea’s National Pension Service all increased their MicroStrategy positions—each by an amount equivalent to roughly 700 BTC.
U.S. state pension funds in California, New York, North Carolina, and Kentucky collectively added exposure equivalent to 1,000 BTC through the same vehicle. Smaller increases were also reported by Saudi Arabia, France, Sweden, and Liechtenstein.
“We believe that in some cases, MSTR holdings by government entities reflect a desire to gain Bitcoin exposure where local regulations do not allow direct BTC holdings,” Kendrick said.
Crypto price today: altcoins rise; $TRUMP jumps over 5%
Most altcoins advanced on Tuesday, tracking Bitcoin’s rise.
World no.2 crypto Ethereum jumped over 3% to $2,485.43.
World no. 3 crypto XRP rose 1.2% to $2.33.
Solana climbed 2.8%, and Cardano added less than 1%, while Polygon saw marginal gains.
Among meme tokens, Dogecoin advanced 1.4%, while $TRUMP gained over 5%.
Ayushman Ojha contributed to this report.