Bitcoin rockets past $100,000 for the first time, extending its sharp post-election rise

Bitcoin surged to a record high on Thursday, vaulting more than 3% in early trading and hurtling past $100,000 for the first time.

Bitcoin price rose to a record high on Thursday, surging more than 3% in early trading to move past the $110,000 mark for the first time.

According to Bitstamp, the price of bitcoin was last up 3.4% at $111,385. The cryptocurrency has been extending a sharp rally since the November election of President Donald Trump, a cryptocurrency supporter and investor.

Ether, the second-largest cryptocurrency, rose 6%. The $TRUMP memecoin, which was launched by the president in January, increased nearly 6%.

A surge in the value of some cryptocurrencies in recent days followed a Senate vote to advance the GENIUS Act, an industry-backed bill that aims to regulate some digital currency.

The measure establishes rules targeting stablecoins, a type of cryptocurrency pegged to the value of another asset, often the U.S. dollar. If enacted, the bill could allow such crypto coins to become a mainstream tool for digital payments and other financial instruments, setting the stage for an influx of investment in digital currency.

But critics say the measure fails to address conflict-of-interest concerns exemplified by Trump, and it risks endangering consumers and the wider economy with a weak set of restrictions.

Trump, who also backs a cryptocurrency firm World Liberty Financial, has denied any wrongdoing involving his crypto ventures.

The record highs in bitcoin also come as Treasury yields have spiked amid deficit concerns following a U.S. House vote on Thursday to pass a domestic policy bill.

The nonpartisan Congressional Budget Office on Tuesday found the tax policies backed by Trump would add $3.8 trillion to the national debt. The finding comes days after a U.S. credit downgrade at Moody's in part due to the country's deficit.

Higher yields increase the cost of U.S. borrowing and add strain to the nation's finances. And as yields face upward pressure, investors may be inclined to seek out alternatives to the U.S. dollar.

“I suspect it’s a mix of regulatory adoption and fear for the dollar given the expectation of high government spending,” said Bryan Armour, director of passive strategies research at financial firm Morningstar.

The price of bitcoin has surged about 40% since the presidential election. Over that period, the S&P 500 rose 10%, while the yield on the 10-year Treasury note increased about 70 basis points.

In July, Trump told the audience at a cryptocurrency conference in Nashville, Tennessee, that he wanted to turn the U.S. into the "crypto capital of the planet."

Trump promised to weaken federal oversight of cryptocurrency and establish the federal government's first strategic bitcoin reserve.

On Thursday, Trump is set to attend a gala with hundreds of top investors in his memecoin, which an announcement described as an “intimate private dinner.” The move elicited concern among some critics as a possible means of exchanging access to the president for financial gain.