Bitcoin soared to a new record high of $1,11,447.70 on Wednesday, surpassing its January peak and marking a gain of over 50% since April. The rally is fueled by improving global risk appetite, growing doubts over the US dollar’s stability, and a surge in institutional interest.
The cryptocurrency’s rise follows easing US-China trade tensions and Moody’s downgrade of US sovereign debt, prompting a shift of capital into alternative assets like gold, tech stocks, and now, crypto. Antoni Trenchev of Nexo called it “blue sky territory,” citing stronger regulatory clarity in the US and increased participation from traditional financial players.
JPMorgan’s move to let clients buy bitcoin and Coinbase’s recent inclusion in the S&P 500 are seen as key milestones, boosting investor confidence. While a data breach at Coinbase is under investigation, interest in digital assets remains robust.
Bitcoin’s growth is also aligning with its typical four-year halving cycle, with analysts projecting a potential peak of $150,000 in 2025. Meanwhile, Ether struggled to keep pace, slipping 0.5% to $2,513. The current breakout underscores not just crypto enthusiasm, but a broader reallocation in global capital flows.
