Patrick Gerhart, President of Banking Operations at Telecoin, shared insights with News Channel Nebraska on how this development will reshape the financial landscape for Nebraskans. “The GENIUS Act will provide much-needed regulation and insight into how the government will treat stablecoins, a type of cryptocurrency typically backed by a fiat currency,” Gerhart explained. “At Telecoin, we are developing a stablecoin that will be backed by the U.S. dollar on a one-to-one basis.”

Last month, Bitcoin (BTC -0.75%) reached a new all-time high of $111,970. Even after a small pullback, the leading cryptocurrency is still up 13% this year, while the S&P 500 has gained just 1.6%. Going back even further, Bitcoin has returned an impressive 990% during the past five years.

When a cryptocurrency goes on a tear, investors and prospective investors want to know why. And, even more importantly, they want to know if the gains are likely to continue. In Bitcoin’s case, there are a few key reasons it has been doing so well lately.

1. A crypto-friendly political climate

President Donald Trump was pro-crypto and pro-Bitcoin during his campaign, even saying that he wanted the U.S. to be “the Bitcoin superpower of the world.” He was expected to usher in a more crypto-friendly climate if elected, and so far, he has done just that.

Under the Biden administration, the Securities and Exchange Commission (SEC) had gone after many of the major crypto companies and exchanges. Trump’s pick for SEC Chair, Paul Atkins, is known for supporting cryptocurrency. Since Trump has taken office, the SEC has ended lawsuits with Coinbase Global (COIN -1.13%) and Binance and ended investigations into OpenSea, an NFT marketplace; and Uniswap, a decentralized exchange.

The Trump administration also announced the creation of a Strategic Bitcoin Reserve in March. Just like countries stockpile gold, foreign currencies, and other valuable assets, the federal government is stockpiling Bitcoin. Arizona and New Hampshire have followed suit with their own Bitcoin reserves.

Government support for Bitcoin and cryptocurrency as a whole should be good for the industry, as it helps further legitimize cryptocurrencies as an investment. Since Election Day, Bitcoin has hit multiple all-time highs and is up 54% overall.

2. It’s a hedge against a weak U.S. dollar

The U.S. dollar has been losing value, with the U.S. Dollar Index (DXY) down about 9% on the year. Import tariffs, the possibility of a trade war, and worries of a recession have all taken their toll.

When the dollar declines or there’s a period of high inflation, investors often look for alternative assets to use as stores of value. Gold has long been a popular choice, and in recent years, Bitcoin has been called digital gold. There’s a limited number of Bitcoin available — the maximum supply is capped at 21 million coins. This gives it a built-in scarcity that traditional currencies don’t have.

It’s hard to predict currency fluctuations or when the U.S. dollar will bounce back, although a U.S.-China trade deal would probably help. This may not be a long-term tailwind for Bitcoin, but it is a benefit at the moment.

3. It’s increasingly popular with institutional investors

While institutional investors used to be wary of investing in Bitcoin, that’s no longer the case. The SEC approved the first Bitcoin spot price exchange-traded funds (ETFs) in January 2024, opening the door for more institutional adoption. Those U.S. Bitcoin ETFs had inflows of $5.2 billion in May and have over $125 billion in combined assets under management (AUM) at the time of this writing.

Like government support, institutional investors help legitimize Bitcoin, and the amount of money they invest can also drive up the price. Bitcoin’s value has already jumped by 130% since the approval of Bitcoin ETFs, and cryptocurrency will likely become more and more mainstream going forward. A January survey by EY Parthenon and Coinbase found that 83% of institutional investors were planning to increase their digital asset allocation in 2025.

Will Bitcoin continue to surge?

All the factors that have contributed to Bitcoin’s latest bull run are still in place. The political climate is and should remain positive toward cryptocurrency. Banks, hedge funds, and other institutions are investing in Bitcoin. The U.S. dollar hasn’t recovered yet, although that could change at any time.

This doesn’t mean Bitcoin is a surefire investment. Far from it — Bitcoin is risky, and you could make a compelling argument against it. Bitcoin has limited utility, transactions are slow and relatively expensive, and it doesn’t produce anything of value like a business does. People invest in the hopes that the price will go up.

But as it’s demonstrated over the years, Bitcoin can deliver incredible returns, and it’s the most successful cryptocurrency by a wide margin. Stocks are still a safer choice, but Bitcoin is a good alternative investment for anyone who wants digital assets in their portfolio.

In recent months, France has been shaken by a series of kidnappings and attempted abductions involving prominent entrepreneurs in the cryptocurrency sector. 

A significant breakthrough came with the arrest, in Morocco, of a key suspect. This episode marks a critical point in the fight against organized crime in the world of cryptocurrencies.  

The context: a series of disturbing cryptocurrency kidnappings in France

The Moroccan authorities have announced the arrest of Badiss Mohammed Bajjou, a 24-year-old Franco-Moroccan considered the mastermind behind a series of kidnappings targeting entrepreneurs active in the cryptocurrency sector in France. 

The arrest took place in Tangier, a city in the north of Morocco, thanks to a coordinated action by the country’s General Directorate for National Security.  

Bajjou was wanted with a red notice from Interpol for serious charges including arrest, kidnapping, illegal or arbitrary detention of hostages. 

Its identification and capture are an important step forward for French and international justice in response to the growing wave of violence against actors in the bull and bear cryptocurrency sector.  

France has experienced an escalation of kidnappings related to cryptocurrency entrepreneurs, causing alarm at the national level. 

These events have highlighted the risks associated with the rapid expansion of the sector, drawing unwanted attention to prominent figures in the field.  

Among the most significant cases that have emerged is the kidnapping in January of David Balland and his partner, which occurred under terrible circumstances. 

Balland is the co-founder of one of the most well-known companies in the sector, valued at over a billion dollars, which deals with digital assets like Ledger. During the kidnapping, one of the captors even severed a finger of Balland to increase the pressure on the ransom.  

The problem has provoked a strong reaction from industry operators. 

A well-known entrepreneur described the situation as a true “messicanizzazione” of security in France, a reference to the growing perception of insecurity and violence similar to that observable in other more challenging global contexts.  

This expression summarizes the collective anxiety of cryptocurrency operators, highlighting the need for immediate and structural interventions against these criminal episodes.  

The involvement of 25 people in the investigations

The French law enforcement agencies have intensified the investigations, leading to the indictment of 25 people, including six minors. These individuals are suspected of having participated in both the completed kidnappings and the failed attempts at abduction.  

This extensive operation demonstrates how deeply rooted and organized the phenomenon is. However, the arrest of Bajjou represents a strong signal of the local and international investigative capability in curbing these bull criminal groups.  

The wave of violence has created great embarrassment for the French government, which now finds itself having to effectively protect a category of citizens particularly vulnerable due to their economic activities in the digital world.  

In response, the French Minister of the Interior, Bruno Retailleau, called an emergency meeting with the main players in the cryptocurrency sector. 

In this meeting, concrete measures and plans were announced to increase the safety of entrepreneurs and their families.  

Even though the specific details of the measures have not yet been fully formalized, the government’s intent to enhance both physical and digital protection for those operating in this field is clear. 

The objective is to mitigate criminal risk and restore confidence in a sector considered strategic for economic innovation.  

The economic and symbolic weight of cryptocurrencies in the vicenda

This series of kidnappings highlights the growing value of digital financial assets like bitcoin and other cryptocurrencies, which now represent personal fortunes that frequently exceed millions of euros.  

The rapid growth and appreciation of companies like Ledger demonstrates how the economy linked to cryptocurrencies has reached a dimension where security becomes a fundamental issue. The direct involvement of high-profile entrepreneurs, targets of kidnappings, highlights the direct correlation between digital wealth and criminal risks.  

The arrest of Bajjou in Morocco constitutes an encouraging signal in the fight against kidnappings related to the world of cryptocurrencies, but it also indicates the complexity of the problem, which extends beyond national borders.  

In the future, it will be essential for the French authorities, together with international ones, to keep their guard up through coordinated operations and more effective support for the victims. 

Furthermore, the cryptocurrency sector will need to invest more in prevention and security, so that this new “form of wealth” does not become an easy target for crime.  

Ultimately, this event serves as a warning for all parties involved, inviting a constant dialogue between institutions, entrepreneurs, and the digital community. 

Only in this way will it be possible to transform the challenge of security into an opportunity for sustainable and serene growth for the cryptocurrency ecosystem.