Bitcoin Rises to $110,960 Amid US Debt Fears and Hopes for New Crypto Legislation

Bitcoin Rises to $110,960 Amid US Debt Fears and Hopes for New Crypto Legislation

May 23, 2025 – Bitcoin (BTC) is holding higher after reaching a fresh record high earlier today, driven by growing optimism over upcoming U.S. digital asset legislation and deepening concerns about U.S. government debt.

BTC rose 2.5% to $110,960, after touching an intraday high of $111,862, according to data from Tredu. This marks a continuation of the bullish trend in the cryptocurrency market, as traders and institutional investors increasingly view Bitcoin as a hedge against traditional financial instability.

Analysts at Deutsche Bank noted that part of the momentum is tied to expectations that U.S. lawmakers are close to finalizing legislation for stablecoins—digital assets typically pegged to the U.S. dollar or another traditional asset. The bill, which aims to bring clarity to the crypto industry, is expected to provide a more stable regulatory framework that could encourage broader adoption of digital currencies.

Adding to the bullish narrative is growing unease over the U.S. fiscal situation. Investor fears have been amplified following Moody’s recent downgrade of the U.S. credit rating, and concerns that President Donald Trump will struggle to push his tax-cut agenda through Congress. With the U.S. debt projected to rise sharply, confidence in the dollar is being tested, leading many investors to diversify into alternative assets such as Bitcoin and gold.

As regulatory uncertainty begins to fade and macroeconomic risks mount, Bitcoin appears to be strengthening its role as a digital store of value in global markets.