Bitcoin hits record high, driven by optimism over cryptocurrency legislation in the United States

Bitcoin hit a record high on Wednesday, driven by a wave of optimism over cryptocurrency legislation in the United States.

Bitcoin hit a record high on Wednesday, buoyed by a wave of optimism over cryptocurrency legislation in the United States and a more favourable macroeconomic environment.

The world’s most popular cryptocurrency surged to an all-time peak of $109,499.76, surpassing its previous high set on January 20 when Donald Trump was sworn in as US president.

Bitcoin was trading up 2.02% in the past 24 hours at $109,499.76 by 01:04 ET (05:04 GMT).

According to analysts, US policymakers have shown greater bipartisan support for a cryptocurrency bill on the regulation of so-called stablecoins, digital coins whose value is tied to the dollar.

This has sparked fresh hopes for regulatory clarity in the sector, including for Bitcoin, which is not directly linked to the dollar.

The digital currency has also been buoyed by a more favourable macroeconomic environment, as investors’ appetite for riskier assets has returned following an easing of tensions between the US and its key trading partners.

Trump vowed to support cryptocurrencies during his campaign for a second White House term.

But a wave of US tariffs unleashed on countries around the world dampened financial markets, causing a wave of uncertainty.

Bitcoin broke back through the symbolic $100,000 threshold on May 8 for the first time since February, as Britain and the United States unveiled a trade deal.

Cryptocurrencies have made headlines since their creation, gaining attention for their extreme volatility and the collapse of several industry giants, foremost among them the FTX exchange platform.

The digital currency is created—or “mined”—as a reward when powerful computers solve complex problems to validate transactions made on a meddle-proof register known as the blockchain.