Bitcoin Hits New Record High as Legislative Support Grows

Bitcoin’s price soared to an all-time high of $111,880, driven by easing global tensions and strong institutional demand. The Texas Senate passed a significant bill for Bitcoin, while on-chain data showed all tracked wallets were profitable. Increased trading volumes and liquidations notably marked the trading landscape, with market sentiment firmly in ‘greed’ territory.

In a surprising twist for the crypto market, Bitcoin’s price surged to a jaw-dropping all-time high of $111,880 yesterday, marking a 4.05% increase within a single day. This remarkable rally appears to be fuelled by a combination of easing global tensions, increased derivatives trading, and escalating institutional demand, painting a picture of renewed enthusiasm in the market. Ethereum also saw a hearty boost, climbing 2.86% to hit $2,631, nudging the total cryptocurrency market capitalisation up to a solid $3.66 trillion.

Trading volumes indicated a robust market landscape, with daily trading activity skyrocketing 74.69% to $219.36 billion. Moreover, the open interest in crypto futures climbed 18.58% to reach $80.11 billion, signalling a significant influx of capital and a rebound in investor confidence. All these metrics seemed to suggest that traders were eagerly re-entering the market, challenging the more cautious sentiment that prevailed just a while ago.

A closer look at market conditions revealed a spike in liquidations, particularly affecting traders who bet against Bitcoin. In a single day, total liquidations hit $225.67 million, predominantly from short positions which accounted for $179.34 million. The rapid rise in Bitcoin’s price caused a price squeeze for many forced out of their losing short bets, leaving only $46.34 million liquidated from long positions—actually quite an imbalance.

What’s also noteworthy is the dramatic uptick in options trading, showing an 88.52% increase in volume up to $8.12 billion. Open interest in options rose modestly by 5.38%, indicating a wave of speculative trading activity flooding the market, which in turn added more volatility to the situation. It’s worth mentioning that the Fear & Greed Index currently stands at 72, indicating an overall sentiment of “greed,” which analysts believe played a role in the current bullish trend.

On the legislative front, Texas has taken significant steps to solidify its position in the crypto sphere. Senate Bill 21 received bipartisan support and was passed by the House. This proposed the creation of a state-managed Bitcoin reserve fund, limited to assets with a market cap above $500 billion—which for now only includes Bitcoin. Analysts suggest this legislation could be a game changer for crypto acceptance at the state level, further boosting institutional confidence in the cryptocurrency.

Simultaneously, VanEck is preparing to launch a Real World Asset fund on the Avalanche blockchain, reflecting rising institutional curiosity in tokenized finance and blockchain technologies.

On-chain data from IntoTheBlock also painted a promising picture, revealing that 100% of tracked Bitcoin wallets are currently profitable. This is a noteworthy first for this market cycle, demonstrating that Bitcoin holders, in total, could be sitting on unrealized profits worth $2.21 trillion with 19.89 million BTC in profit.

Prominent voices in the crypto space, like Michael Saylor, are highlighting these optimistic trends, pointing to the strong positions of long-term holders. Meanwhile, bipartisan legislation like the GENIUS Act also adds momentum—if passed in the Senate, it could provide clear legal frameworks for dollar-backed crypto assets, potentially sparking even more demand for U.S. Treasuries on-chain.

This explosive growth for Bitcoin seems to hinge on a mixture of positive legislation, increased trading activity, and solid on-chain metrics. With heavyweight institutional backing and state-level laws being passed in favour of crypto, the momentum appears to be firmly in favour of the bulls. But as always, potential investors should tread carefully—cryptocurrency investments come with inherent risks, and this bull run is no exception.