Crypto Currents: Bitcoin surges past $123K, surpasses Amazon market cap

As bitcoin, ethereum and other cryptocurrencies see major institutional and regulatory developments, the lines between digital finance and traditional Wall Street continue to blur. Catch up on this week’s top stories highlighting the accelerating maturation of the crypto industry with this recap compiled by The Fly.. Also, join us for your essential daily recap, every day at 2 PM ET on FlyCast radio.

BITCOIN HITS NEW ALL-TIME HIGH: In a historic weekend for the cryptocurrency market, bitcoin (BTC) shattered its previous records, surging past the $123,000 level in a powerful and sustained rally. The move was so significant that it pushed bitcoin’s total market capitalization beyond that of tech and retail giant Amazon (AMZN), making it the world’s fifth-largest asset by market cap. This milestone is being driven by a potent combination of factors. On one hand, institutional investors and macro analysts point to the rally as a fundamental hedge against persistent concerns over the U.S. national deficit. On the other, the breach of such a key psychological level has ignited broad excitement, signaling a new phase of price discovery for the leading digital asset.

U.S. LAWMAKERS LAUNCH ‘CRYPTO WEEK’: A landmark week is underway in Washington D.C., as the U.S. House of Representatives has officially launched “Crypto Week,” scheduling floor votes on three pivotal pieces of legislation. This represents the most concentrated legislative effort to date to establish a clear regulatory framework for the digital asset industry in the United States. The bills include the Financial Innovation and Technology for the 21st Century Act, or FIT21, which seeks to resolve the long-standing jurisdictional conflict between the SEC and CFTC. Also on the docket is a bill to regulate stablecoins, aiming to protect consumers by mandating one-to-one reserves. Finally, lawmakers will vote on the Anti-CBDC Surveillance State Act, a preventative measure to prohibit the Federal Reserve from issuing a central bank digital currency without explicit Congressional approval, addressing widespread privacy concerns.

DEFI AND INSTITUTIONAL MILESTONES: The decentralized finance sector is celebrating a major achievement as lending protocol Aave (AAVE) became the first in its category to surpass $50B in net deposits. This milestone, representing the total value of assets supplied by users for lending minus what has been borrowed, signifies immense trust and maturity in the DeFi ecosystem. This growth is mirrored by ongoing institutional adoption. SharpLink Gaming (SBET), led by Ethereum co-founder Joseph Lubin, continued its strategic accumulation by adding nearly $49M in ethereum (ETH) to its corporate treasury. In a different type of institutional move, blockchain analysis firm Arkham observed the government of Bhutan transferring over $62M in bitcoin to the Binance exchange, a maneuver widely seen as a strategic profit-taking measure during the market’s peak.

CRYPTO ATM OPERATOR REPORTS DATA BREACH: Amid the bullish market news, a significant security incident serves as a critical reminder of the industry’s ongoing challenges. Cryptocurrency ATM operator Bitcoin Depot reported a data breach that exposed the personal information of nearly 27,000 of its customers. According to security analysts, the compromised data includes sensitive details such as user names, email addresses, and transaction histories. This type of information is highly valued by malicious actors, who can use it to orchestrate sophisticated and targeted phishing attacks in an attempt to trick users into revealing more critical information like passwords or private keys.

PRICE ACTION: As of time of writing, bitcoin (BTC) was trading at $121,777.10, while ethereum (ETH) was $3,063.89.