Investing.com-- Bitcoin rose slightly on Monday, continuing its subdued rebound after retreating from recent record highs, as the cryptocurrency remained broadly supported by favorable regulatory developments and growing institutional adoption.
The world’s largest cryptocurrency rose 1.2% to $109,457.9 as of 01:18 ET (05:18 GMT).
The token surged to a record high of nearly $112,000 on Thursday, but fell sharply on Friday to as low as $107,00 as investors booked profits at peak levels. Meanwhile, whale trades also contributed to the weakness.
“The minimal resistance encountered at the previous record high of $109,576 demonstrates exceptionally strong upward momentum,” IG analysts said in a note.
“Additionally, profit-taking volume was reported to be less than half of that observed when Bitcoin first reached $100,000 in December, providing further evidence of sustained investor confidence,” analysts added.
Regulatory cheer supports crypto; Fed’s Kashkari still skeptical
Last week, both the U.S. and Hong Kong advanced significant regulatory initiatives aimed at establishing comprehensive frameworks for stablecoins.
In the U.S., the Senate advanced the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act.
Meanwhile, on May 21, Hong Kong’s legislature passed a landmark stablecoin bill, introducing a licensing framework for fiat-referenced stablecoin issuers.
These parallel developments underscore a growing international consensus on the need for robust stablecoin regulations.
Moreover, last week, the Wall Street Journal reported that major U.S. banks were in early discussions to launch a joint stablecoin, aiming to counter the growing competition from the cryptocurrency industry.
Seeing the shift in sentiment from Wall Street, investors were optimistic about increased institutional adoption.
“Technical analysis suggests Bitcoin’s bullish trend is likely to continue, though a short-term technical correction may occur with support anticipated around $102,000-$102,500, given elevated valuations and excessively bullish market sentiment,” IG analysts added.
Meanwhile, Minneapolis Federal Reserve President Neel Kashkari said in a Bloomberg TV interview on Monday that he was still uncertain about the use case of cryptocurrencies and sees it as an instrument of speculation.
Crypto price today: Most altcoins see modest gains
Most altcoins also extended gains on Tuesday, in line with Bitcoin’s rise.
World no.2 crypto Ethereum rose 2.1% to $2,563.52.
World no. 3 crypto XRP gained 1% to $2.3440.
Solana gained 1.9%, while Cardano added 2.6%, and Polygon rose 1.5%.
Among meme tokens, Dogecoin gained 2.5%, while $TRUMP edged up 0.4%.