Bitcoin at all-time high amid ‘Crypto Week’: What does it mean?

Bitcoin at all-time high amid ‘Crypto Week’: What does it mean?

Bitcoin shattered its all-time high on Thursday, going past $118,000 and even smashing the $119,000 barrier on Friday before settling at $118,780.

Souvenir tokens representing cryptocurrency Bitcoin and the Ethereum network, with its native token ether.(REUTERS/ Representational)

The rally comes amid a stock market tumble due to trade and tariff tensions caused by US President Donald Trump's tariff letters to more than 20 countries. It also breaks a two-month lean period for the cryptocurrency market, as Ether climbed above $3,000 for the first time since February.

But what has led to a sudden bull run in Bitcoin and the wider cryptocurrency circle, and how do the option traders view its future?

The Bitcoin surge comes just before ‘Crypto Week,' when the US Congress will consider three major bills impacting regulations in the cryptocurrency market.

The GENIUS Act would enable private companies to issue stablecoins. Donald Trump has already voiced his support for the bill through social media, and the Senate has cleared it. The House of Representatives is also expected to consider the Digital Asset Market Clarity Act, which would establish a framework for cryptocurrency regulation.

The CBDC Anti-Surveillance State Act, which would prevent the Federal Reserve from issuing a central bank digital currency, is also expected to be discussed. The three bills represent a dramatic shift in policy around cryptocurrency after Trump took office in January this year.

For years, unclear rules and hostile regulations in the US drove cryptocurrency companies out of the country. Now, the mood seems to be shifting as regulators move towards clearer oversight.

“We expect the capital that was previously sidelined due to regulatory uncertainty to re-enter. Even if final passage stalls, the optics of legislative engagement are bullish,” said Jag Kooner of Bitfinex.

Option traders are so bullish about the market that they are now targeting Bitcoin to breach the $150,000 mark.