Bitcoin reached a new all-time high on Wednesday, surpassing its previous January record, as improving investor sentiment helped propel the cryptocurrency market upward following a recent downturn triggered by trade tariffs.
The leading cryptocurrency briefly touched $109,760.08 before settling at $108,117, up 1.1% on the day. The surge in price has been attributed to a mix of factors, including the easing of trade tensions between the U.S. and China and a recent downgrade of U.S. sovereign credit by Moody’s, which has driven investors to look for alternatives to the U.S. dollar.
Read more: Bitcoin Surpasses $100,000 — Will $150K Be Next?
Antoni Trenchev, co-founder of digital asset platform Nexo, noted that with the January peak surpassed and a 50% gain since April’s low achieved, Bitcoin has entered “blue sky territory.” He cited growing institutional interest and a supportive U.S. regulatory climate as key drivers behind the rally.
Bitcoin’s performance continues to mirror trends seen in tech stocks, which also benefit from positive investor sentiment. The Nasdaq index, heavily weighted with technology companies, has risen 30% since early April. Meanwhile, the U.S. dollar has shown ongoing weakness, further boosting Bitcoin’s appeal.
Market experts also credit increased participation from traditional financial institutions for Bitcoin’s recent momentum. JPMorgan CEO Jamie Dimon, previously critical of crypto, recently announced the bank would now allow clients to buy Bitcoin. Additionally, major crypto exchange Coinbase was recently included in the S&P 500 index.
However, Coinbase is currently facing a U.S. Department of Justice investigation into a recent data breach. Despite this, optimism remains strong. Trenchev pointed out that Bitcoin is in the fourth year of its traditional price cycle — typically a bullish phase following the halving of mining rewards — and believes a $150,000 target by 2025 remains plausible, despite ongoing macroeconomic uncertainty.
Interestingly, Ethereum (ETH), the second-largest cryptocurrency, did not follow Bitcoin’s upward trend and was down 0.5% at $2,513.
