Bitcoin is trading just below its record high after a sharp rally last week, as a combination of geopolitical tensions, economic uncertainty, and increased institutional interest drives renewed demand for the cryptocurrency, FOX Business reports.
Investors are increasingly turning to bitcoin as a potential safe haven in a world facing rising instability and evolving financial landscapes.
Several factors are converging to fuel bitcoin’s momentum. At the recent Solana Accelerate Conference, experts pointed to bitcoin’s changing role in financial markets. Sergey Nazarov, co-founder of Chainlink, observed that bitcoin is starting to decouple from tech stocks and behave more like a store of value, similar to gold. This shift in perception is prompting investors to consider bitcoin a hedge during uncertain times.
“People see bitcoin as a reserve as well,” said Johann Kerbrat, senior vice president at Robinhood Crypto. “When there is a bit of instability in the market or in the globe, they actually use bitcoin as a reserve currency.”
Confidence in the regulatory future of digital assets is also playing a significant role in the rally. Lawmakers in both chambers of Congress are advancing legislation aimed at establishing a clearer framework for digital assets, particularly stablecoins—digital currencies tied to traditional assets such as the US dollar. The GENIUS Act (“Guiding and Establishing National Innovation for US Stablecoins”) has gained momentum, with Senator Bill Hagerty predicting Senate approval within days.
On the House side, Representative French Hill emphasized the need for quick action to encourage innovation and prevent capital flight. He argued that the lack of regulation has discouraged investment in the US crypto space and that stablecoin rules and market structure bills could change that trajectory.
Support for these legislative efforts appears to be bipartisan. Kristen Smith, president of the Solana Policy Institute, noted that crypto policy is increasingly being seen as a national issue rather than a partisan one, which is helping to stabilize investor sentiment.
Institutional involvement has also surged, with US bitcoin exchange-traded funds (ETFs) seeing inflows of approximately $4.2 billion so far in May. This marks a shift in how traditional investors view digital assets—not just as speculative tools, but as integral parts of a diversified portfolio.
Meanwhile, US banks are reportedly exploring the development of a jointly issued stablecoin. This move could reshape how money moves within the financial system and reflects the growing belief that traditional institutions must adapt to the digital era to remain competitive.
