Bitcoin soared to a record high on Wednesday, surpassing its previous peak from January, as global investor sentiment continues to rebound following last month’s tariff-related market jitters.
The world’s largest cryptocurrency climbed to an intraday high of $109,760.08 and was trading at $108,117 at the time of reporting, marking a 1.1% gain.
Several factors are fueling the latest rally, including easing trade tensions between the U.S. and China, and a recent downgrade of U.S. sovereign debt by Moody’s.
Investors diversifying assets
The downgrade has prompted investors to diversify away from the dollar and explore alternative assets like bitcoin.
“With January’s highs now in the rearview mirror and bitcoin up over 50% from its April lows, the asset has entered ‘blue sky’ territory,” said Antoni Trenchev, co-founder of digital asset platform Nexo.
He cited growing institutional interest and a friendlier U.S. regulatory landscape as key tailwinds.
Bitcoin’s performance continues to show parallels with tech stocks, benefiting from improving investor confidence.
The tech-heavy Nasdaq index is up 30% since early April, mirroring bitcoin’s bullish trajectory. Meanwhile, continued weakness in the U.S. dollar has further strengthened bitcoin’s position.
Banks warming up to digital assets
Traditional financial institutions are also increasingly warming up to digital assets. This week, JPMorgan CEO Jamie Dimon, historically a vocal crypto skeptic, announced the bank would begin offering bitcoin to its clients.
Additionally, crypto exchange Coinbase was recently added to the S&P 500 index, marking a significant milestone for the industry.
- However, Coinbase is currently under investigation by the U.S. Department of Justice following a recent data breach, according to a statement issued by the company on Monday.
- Looking ahead, market analysts remain optimistic. Trenchev noted that bitcoin is currently in the fourth year of its typical price cycle, which usually follows a halving event when mining rewards are cut in half and often precedes major bull runs.
- He believes a $150,000 price target in 2025 remains achievable, despite ongoing macroeconomic uncertainties.
Meanwhile, Ether, the second-largest cryptocurrency, did not share in Bitcoin’s upward momentum. It was last down 0.5%, trading at $2,513.
What you should know
Nairametrics earlier reported that JPMorgan Chase’s recent announcement on digital assets would push Bitcoin to its all-time high.
At the company’s annual investor day on May 19, CEO Jamie Dimon stated that although his bank will not hold Bitcoin itself, it will soon allow its customers to purchase it.
“We are going to allow you to buy it. We will not take custody of it. It will be included in client statements,” he declared.
Dimon also reiterated his long-standing mistrust of cryptocurrency assets, citing their use in terrorism, sex trafficking, and money laundering.
“I support your right to smoke, even though I don’t think you should. I support your right to purchase Bitcoin,” he added.
- Strategy, the business intelligence software company founded by Michael Saylor, also recently expanded its Bitcoin holdings to 576,230 BTC following its latest acquisition.
- The announcement on Monday followed Metaplanet’s recent purchase, the second-largest in its Bitcoin-focused history.
The publicly listed American company increased its Bitcoin holdings from 7,390 BTC to 576,230 BTC, acquired for about $40 billion at an average price of just under $70,000 per coin.
