Crypto Currents: Bitcoin hits $112K record high amid U.S. policy clash

As bitcoin surges to new heights, driving bullish momentum across the digital asset space, the industry finds itself at a critical juncture. Key developments in regulation, institutional adoption, and technology are setting the stage for the next phase of growth. Stay up on the crypto news that matters with “Crypto Currents,” daily from The Fly. Join us 2PM daily for your essential briefing on the fast-moving world of cryptocurrency on FlyCast radio, available to subscribers at TheFly.com. Also, subscribe to our YouTube channel for our Crypto Fly By weekly recap.

MARKETS ROAR TO NEW HIGHS AS INSTITUTIONS MAP THE FUTURE: The crypto market is flashing bright green today as bitcoin (BTC) shattered its previous records, surging past the $112,000 mark to set a new all-time high. The move has pulled the broader market upward, with ethereum (ETH) posting impressive gains of over 7% to trade near $2,800. In a significant shift, on-chain data shows ethereum’s 24-hour futures volume briefly overtook bitcoin’s, suggesting traders are rotating capital and building confidence in major altcoins. Meanwhile, institutional players are planning for a future dominated by digital dollars. Ant International, the fintech giant, announced it will integrate USD Coin (USDC) to streamline cross-border payments for its global merchant network. In a more measured take, JPMorgan (JPM) released a forecast predicting the stablecoin market will hit $500B by 2028, citing the pace of regulation as a key factor tempering growth.

REGULATORY BATTLES INTENSIFY AT HOME AND ABROAD: A contentious U.S. Senate hearing has put the deep political fault lines on crypto policy on full display. During a Senate Banking Committee meeting on the proposed “CLARITY Act,” Senator Elizabeth Warren argued the bill creates loopholes that would allow firms to dodge SEC oversight, while Senator Tim Scott contended it provides the legal certainty needed to foster innovation domestically. With the two sides remaining far apart, a clear legislative path for crypto in the U.S. appears increasingly difficult. The debate over digital currency control is also escalating internationally. The governor of the Bank of Korea issued a stern warning this week against allowing non-bank entities to issue stablecoins pegged to the won, citing fears of potential “currency chaos” and signaling a highly cautious regulatory stance.

TECHNOLOGY BLURS THE LINE BETWEEN TRADFI AND CRYPTO: The convergence of traditional financial markets and the digital asset ecosystem is accelerating. In a major move to bridge the two worlds, crypto exchange Bitget has launched tokenized stocks, referred to as “xStocks”, in partnership with Robinhood (HOOD) and Kraken, enabling users to trade assets representing shares in titans like Tesla (TSLA) and Apple (AAPL). The tokenized shares are listed under the tickers “TSLAx” and “AAPLx” on the exchanges. The tokens are backed one-to-one by real-world shares held by a regulated custodian, offering crypto investors 24/7 exposure to the equities market. In Australia, a similar convergence is happening at the sovereign level. The Reserve Bank of Australia is moving forward with “Project Acacia,” its wholesale Central Bank Digital Currency pilot. The project is now entering live testing for tokenized corporate bonds and large-scale property payment settlements in partnership with major local banks.

PRICE ACTION: As of the time of writing, Bitcoin (BTC) was trading above $112,000, while Ethereum (ETH) was trading at approximately $2,800.