Bitcoin Hits Record High Amid Improving Market Sentiment and Institutional Support
Bitcoin soared to an all-time high on Wednesday, surpassing January’s peak as investor confidence rebounded after last month’s market volatility triggered by trade tensions. The cryptocurrency reached $109,760.08 before settling slightly lower at $108,117, up 1.1%. This surge follows a broader recovery in risk assets and reflects a shift in market dynamics influenced by global macroeconomic factors.
The latest rally has been fueled by easing tensions between the United States and China, alongside a recent downgrade of U.S. sovereign debt by Moody’s. These developments have prompted investors to seek alternatives to the U.S. dollar, driving demand for digital assets like bitcoin. Antoni Trenchev, co-founder of crypto platform Nexo, noted the significance of surpassing January’s high, emphasizing the impact of institutional momentum and a favorable U.S. regulatory climate.
Bitcoin’s performance has mirrored that of technology stocks, particularly the Nasdaq, which has risen 30% since early April. This alignment highlights how crypto assets tend to rally when investor sentiment is buoyant and the dollar is weakening—another tailwind for bitcoin’s appreciation.
Traditional financial institutions are also playing a bigger role in crypto’s recent upswing. JPMorgan, once a vocal skeptic, has announced it will now allow clients to buy bitcoin. Additionally, Coinbase’s inclusion in the S&P 500 earlier this month is seen as a milestone for the industry, despite the company facing a Justice Department probe related to a recent data breach.
Despite bitcoin’s strength, ether—another leading cryptocurrency—has not followed suit, trading down 0.5% at $2,513. Still, experts like Trenchev believe that bitcoin’s rally is far from over, citing historical patterns in its four-year cycle and projecting a potential price of $150,000 in 2025, even amid lingering macroeconomic uncertainty.
Source: Reuters