Bitcoin hit its highest level on record on Wednesday, far above the previous high from January, as risk sentiment continues to improve after last month’s tariff-induced selloff.
Bitcoin surged to a new high of $109,760.08 before settling at $108,117, marking a 1.1% gain. The rally was driven by several factors, including easing trade tensions between the U.S. and China and Moody’s recent downgrade of U.S. sovereign debt. The downgrade has prompted investors to explore alternatives to the U.S. dollar, further boosting demand for cryptocurrencies.
“Now that Bitcoin has surpassed January’s high and achieved a 50% gain from its April lows, it’s entering ‘blue sky’ territory,” said Antoni Trenchev, co-founder of digital asset platform Nexo, in an emailed statement to Reuters. “Institutional momentum and a supportive U.S. regulatory landscape are providing strong tailwinds.”
Bitcoin often moves in tandem with tech stocks and other risk assets that benefit from positive investor sentiment. The tech-heavy Nasdaq has rebounded sharply, rising 30% from its early April low — a trend that has paralleled continued weakness in the U.S. dollar, further supporting Bitcoin’s upward trajectory.
Another key factor cited by market participants is growing involvement from traditional financial institutions. This week, JPMorgan CEO Jamie Dimon — previously a vocal crypto skeptic — confirmed the bank will allow clients to purchase Bitcoin. Additionally, Coinbase, a major crypto exchange, was recently added to the S&P 500 index.
However, Coinbase also announced on Monday that the U.S. Department of Justice is investigating a recent data breach at the company.
Despite ongoing macroeconomic uncertainties and potential market volatility, Trenchev remains optimistic: “We’re in year four of the Bitcoin price cycle — the post-halving year — which historically signals strong performance. A $150,000 target in 2025 remains within reach.”
In contrast, Ether, the second-largest cryptocurrency, did not follow Bitcoin’s lead. It slipped 0.5% to $2,513.
