Bitcoin hit record highs, driven by a wave of optimism about cryptocurrency legislation in the US.

The world's most popular cryptocurrency rose to a historic high of $109499.76, surpassing its previous high set on January 20, when Donald Trump was sworn in as US president.

U.S. cryptocurrency legislation hopes and Trump support push Bitcoin to new highs, analysts said

Bitcoin hit record highs on Monday, pushed by a wave of optimism over cryptocurrency legislation in the U.S. and former U.S. President Donald Trump’s support for the sector.

The world’s most popular cryptocurrency rose to a historic high of $109,499.76, surpassing its previous high set on January 20, when Trump was sworn in as U.S. president.

Bitcoin was last trading at $108,250.0, up 1.4%.

Analysts said U.S. politicians showed greater bipartisan support for a cryptocurrency bill regulating so-called stablecoins, digital coins whose value is pegged to the dollar.

This has raised new hopes for regulatory clarity in the sector, including for Bitcoin, which is not directly linked to the dollar, AFP reported.

The digital currency was also supported by a more favorable macroeconomic environment, as investor appetite for riskier assets returned after tensions eased between the U.S. and its major trading partners.

Trump promised to support cryptocurrencies during his campaign for a second term in the White House. But the wave of U.S. tariffs imposed on countries around the world has weighed on financial markets and caused uncertainty.

On May 8, Bitcoin broke through the symbolic $100,000 mark for the first time since February, after the UK and the U.S. presented a trade agreement.

Cryptocurrencies have been making headlines since their inception, attracting attention with their extreme volatility and the collapse of several industry giants, foremost among them the FTX exchange platform.

Digital currency is created or “mined” as a reward when powerful computers solve complex problems to confirm transactions made in a tamper-proof ledger known as a blockchain.