Bitcoin surged to a new record on Wednesday, touching $100,447.70, surpassing its previous peak from January.
Bitcoin price rose to a new record high on Wednesday, hitting $111,447.70 and surpassing its previous peak reached in January. The world’s most valuable cryptocurrency has gained more than 50% since April, driven by improving global risk appetite and a flight to alternatives as doubts over the U.S. dollar’s stability grow.
The rally comes amid easing trade tensions between the United States and China, and a fresh blow to the greenback’s credibility after Moody’s downgraded U.S. sovereign debt. The downgrade has sparked a wave of capital into non-dollar assets, including gold, tech stocks—and now, crypto.
“Bitcoin has entered blue sky territory. There’s strong institutional momentum, and the regulatory environment in the U.S. has turned notably more favourable,” Antoni Trenchev, co-founder of crypto platform Nexo, told news agency Reuters.
Bitcoin’s price moves are increasingly tracking those of tech stocks, which tend to benefit from positive investor sentiment. The Nasdaq is about 30% above its early April low, and Bitcoin has been surfing the same optimism wave, further buoyed by a weakening U.S. dollar.
Adding to the bullish mood is the increasing presence of traditional finance players in crypto. This week, JPMorgan CEO Jamie Dimon—a longtime crypto sceptic—said the bank would allow clients to buy bitcoin. Earlier this month, Coinbase was officially added to the S&P 500, a landmark moment for the industry.
Despite a data breach at Coinbase that is currently being probed by the U.S. Department of Justice, investor interest in crypto remains high.
Analysts say Bitcoin’s recent breakout also aligns with its historical price cycle. “We’re in year four of the Bitcoin halving cycle—the year when prices usually peak. If past patterns hold, a target of $150,000 in 2025 is still firmly in play,” Trenchev added.
In contrast, ether, the second-largest cryptocurrency, failed to mirror Bitcoin’s gains and was last down 0.5% at $2,513. Bitcoin’s breakout is a testament not only to optimism in the crypto sphere but also to a broader shift in global capital flows.
