Bitcoin Climbs on Institutional Demand, Trump Backing

Bitcoin surpassed $111,000 for the first time on Thursday, driven by increasing institutional demand and support from Donald Trump's administration.

Bitcoin rose above $111,000 for the first time on Thursday, pushed by increasing institutional demand and support from Donald Trump's administration for the world's largest cryptocurrency.

The cryptocurrency climbed as much as 3.4% to hit a record of $111,980, before paring some of the increase. It was trading at $108,050 by 07:38 ET (11:38 GMT).

Bitcoin has been on a strong run this year, rising more than 600% from lows hit in March amid the coronavirus crisis.

Institutions, including Goldman Sachs and Paul Tudor Jones, have increasingly shown interest in Bitcoin this year as a hedge against inflation and currency instability amid the pandemic.

The cryptocurrency also received a boost after U.S. President Donald Trump's administration threw its weight behind a proposal to introduce a U.S. digital currency.

The administration said it supported the proposal, put forward by members of Congress, to create a digital dollar, code named "LibertyCoin."

But the administration also said it had concerns about the proposal to give the Federal Reserve sole authority to issue the digital currency.

The move comes as China is also working on launching its own state-backed digital currency, which could pose a threat to the U.S. dollar's dominance in the global financial system.

Bitcoin was last up 0.4% at $107,400.