Bitcoin Breaks $110,000
Cryptocurrencies See Gains Nearing $1 Trillion Since Beginning of May
Amidst a surge following the announcement of a trade agreement between Washington and Beijing, and as investors return to riskier asset markets, the cryptocurrency market has registered record gains approaching $1 trillion since the beginning of trading this month.
Bitcoin hit an all-time high on Thursday morning amid growing optimism that the United States will pass its first regulatory measures related to digital assets. The recent gains come amid optimism that US lawmakers are close to agreeing on rules that provide a regulatory framework for cryptocurrencies, along with easing concerns about the impact of US President Donald Trump's tariff policy.
In terms of trading, since the beginning of this month's trading, the combined market capitalization of the cryptocurrency market has jumped 38.2%, with gains of approximately $962 billion. This followed a rise in its total market capitalization from $2.521 billion at the beginning of this month's trading to approximately $3.483 billion in the morning trading session on Thursday.
Bitcoin was at the forefront of the rising currencies. Over the past few hours, the strongest cryptocurrency rose by 2.6%, with a weekly increase of 8.2%, to trade at $110,757 in the latest trading session. Its combined market capitalization also jumped to approximately $2.200.24 billion.
Ethereum continues its gains.
Ethereum, the second-largest cryptocurrency, recorded losses of 0.2% over the past few hours, with a weekly increase of 1.6% over the past week, reaching $2,609. Its combined market capitalization rose to $314.97 billion.
Tizer came in third, with its price stabilizing at $1.00, while its combined market capitalization remained at $1.524 billion. Xripple came in fourth, with gains of 0.6% over the past few hours, followed by a 4.2% decline over the past week, with its price settling at $2.39 today. Its combined market capitalization also rose to $140.67 billion.
BNB, the fifth largest cryptocurrency by market capitalization, came in fifth, with gains of 2.9% over the past few hours, followed by a 5% rise over the past week, trading at $680.57. Its combined market capitalization also rose to $95.85 billion.
For his part, Ofx Strat Co-Founder and cryptocurrency expert Rashed Al-Khazai said that Bitcoin's price movement, which is witnessing record highs, is driven by several fundamental reasons: the massive increase in liquidity levels coming from all investor groups. In an interview, he pointed out that institutional investors are witnessing significant and growing demand, and expectations indicate that this increase will continue in the future.
Al-Khazai confirmed the presence of very strong liquidity support from individual investors, with the highest levels of activity recorded on most trading platforms, and the highest rates of flows, deposits, and transfers on major trading platforms. Therefore, he believes that Bitcoin is experiencing very high and increasing demand, and expectations indicate that this demand will continue to increase.
Regarding the continued flow of funds into cryptocurrency exchange-traded funds (ETFs), particularly Ether and Bitcoin, for five consecutive weeks, Al-Khazai emphasized that ETFs in general, and especially securities issued by large companies, add a degree of credibility and ease to dealing with cryptocurrencies.
He explained that it eliminates some of the risk associated with direct cryptocurrency trading, as trading in Bitcoin has its own inherent sensitivities, and any single mistake could cause the user to lose all of their coins or send them to the wrong person.
He added that ETFs represent a suitable option for a large percentage of investment segments, specifically those who have no intention of directly investing in cryptocurrencies for compliance reasons, or who lack the technical qualifications to deal with cryptocurrencies. Therefore, the existence of these funds "stirred the appetite of segments that previously lacked the capacity to invest in cryptocurrencies."
Legislation Boosts the Sector's Credibility
Regarding the future of legislation, particularly the Genesis Bill, which will regulate stablecoins, Al-Khazai emphasized that legislation is the decisive factor in the field of cryptocurrencies, and has always been so. He pointed out that there is strong interest from all legislators, whether in the United States, Europe, or even the UAE, which has taken the initiative to issue a stable cryptocurrency backed by the UAE dirham.
He said, "The increasing interest of lawmakers in legislating stablecoin infrastructure and issuing regulations for its use has significantly increased its credibility. It may be one of the best doors opened for Bitcoin specifically to enhance the credibility of the sector it represents."
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