Bitcoin (BTC) has surged overnight to an all-time high of US$109,716.14, surpassing its previous ATH back in January as investors looked to safety away from Wall Street uncertainty.
Investors poured into BTC and the greater cryptocurrency market, on the back of the United States Senate progressing its crypto bill and Wall Street buckling under pressure from higher bond yields and uncertainty about the federal budget.
In a 66-32 vote, the U.S. Senate advanced the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act - the first comprehensive federal regulatory framework for stablecoins.
Added to investor swings towards crypto, Hong Kong's Legislative Council officially passed its own “Stablecoins Bill”.
The legislation establishes a mandatory licensing regime for issuers of fiat-referenced stablecoins (FRS) in the city.
Wall Street losses
After a bright start to trade, U.S. benchmarks closed lower on Wednesday (Thursday AEST) as Treasury yields surged amid intensifying concerns about the federal deficit and the Senate's GENIUS Act.
The Dow Jones Industrial Average plunged 816.8 points, or 1.9%, to finish at 41,860.4. The S&P 500 declined 95.8 points, or 1.6%, to 5,844.6, while the tech-heavy Nasdaq Composite shed 270.1 points, or 1.4%, to close at 18,872.6.
The sell-off followed a sharp spike in long-dated bond yields, triggered by fears that a new U.S. budget bill could exacerbate the country's already substantial fiscal deficit.
Find out more: US averages pull back on surging yields, deficit fears
Crypto gains
Cryptocurrencies, led by BTC, soared overnight - surpassing the value of some of the world's largest tech companies.
The overall cryptocurrency market cap has now reached $3.36 trillion, taking over the world’s most expensive company Nvidia (NASDAQ: NVDA) by the same metrics which closed on Wall Street today worth $3.16 trillion.
Bitcoin itself is now worth more than both Amazon (NASDAQ: AMZN) and Alphabet (NASDAQ : GOOG) in market cap, and accounts for over 60% of the crypto market itself, while Ethereum maintains its position as the second-largest cryptocurrency with a market cap of $308 billion.
The new rules will require FRS issuers to meet specific criteria concerning reserve asset management and are part of Hong Kong's broader efforts to create a clear regulatory environment for virtual assets.
Prices (24 hour change) at the time of writing:
- Bitcoin (BTC) US$108,638.70 +1.71%
- Ethereum (ETH) US$2,591.09 +4.52%
