Bitcoin advances 27% so far this year: it is close to its maximum again

As digital currencies become more widely accepted in the financial landscape, stablecoins—cryptocurrencies pegged to an asset, such as the dollar or euro—bridge the gap between established banking systems and the world of digital currencies, such as Bitcoin.

The world's largest cryptocurrency, Bitcoin, advanced 0.38% to $119,094.70 per unit this Monday. This morning, it reached $122,278, approaching its peak of over $123,000. It has gained 27.30% so far this year; however, since reaching its all-time high of $123,104.70 on July 13, it has lost 3.26%.

Bitcoin has experienced a strong rally this year; in fact, the rally began on April 8, when it was trading at $76,312.50, its lowest point since 2025. From that date to August 11, the price has increased by 56.06 percent.

The second-largest cryptocurrency by market value, Ethereum, also held steady, closing at $4,329.56, up 1.61% on Monday. The currency has gained 28.85% year-over-year.

"Despite the recent correction in recent weeks, the price of Bitcoin remains above important technical support levels, suggesting a consolidation phase and possible preparation for a new rally," explained Gildardo Herrera, Director of Strategy and Operations for Latin America at Bitget.

Felipe Mendoza, Financial Markets Analyst at the brokerage ATFX LATAM, highlighted that the interest in digital assets and a strong recovery in the sector are occurring in an environment where the market is awaiting a rate cut from the Federal Reserve.

"The probability of an interest rate cut by September is 80%, which weakens the dollar and increases the attractiveness of bitcoin as a hedge against the loss of US currency yield," he added.

The investors' new bet

Volatility can be an obstacle for those looking to invest in cryptocurrencies, but there is one category designed to mitigate this uncertainty: stablecoins, which are tied to currencies.

Stablecoin market share is on the rise, with market value increasing 34.61% so far this year, from $203.361 billion to $282.05 billion.

“Stablecoins are tokens whose value is tied to that of a real asset or controlled by an algorithm, making their price more stable than that of other cryptocurrencies. The main objective of creating a stablecoin is to provide investors with a safe haven during times of volatility,” BBVA analysts explained in an analysis.

Yanis Varoufakis, an economist and former finance minister of Greece, wrote in a note that “unlike Bitcoin and other cryptocurrencies, which are not pegged to anything and fluctuate like a yo-yo, stablecoins are issued by private companies that promise that their tokens will closely track the value of the dollar.”

He added that “there are good reasons for anyone, not just criminals, to want to use stablecoins: they offer a cheaper and faster way to send money (especially abroad), immune to US sanctions, and more reliable than insecure interbank messaging systems like SWIP.”

"In an increasingly sophisticated digital environment, stablecoins have positioned themselves as the preferred transaction method for Mexican users interacting with technology platforms," noted analysts at Cloudbet, a cryptocurrency platform.

They added that more and more people value the stability, speed, and ease of use offered by these cryptocurrencies, "which are redefining the way digital payments, fund transfers, and online entertainment are accessed globally."

During Crypto Week, the United States Congress passed the first federal legislation to regulate stablecoins.

The law, championed by President Donald Trump, requires state or federal oversight of dollar-pegged tokens, which can be traded 24/7 across various platforms, according to Citigroup.

Its proponents claim it will enable faster and cheaper payments and legitimize a $265 billion market that could reach $3.7 trillion by 2030, they said.