Bitcoin hits all-time high of $110,000 amidst market rally
Over the past 24 hours, Bitcoin has gained more than 4.5%, and in the past month, it has risen over 23%.
Bitcoin has just hit a staggering all-time high, soaring past $110,000 on Wednesday evening. This impressive surge marks a significant milestone for the digital currency, which had previously peaked during President Donald Trump’s inauguration back in January. The positive momentum persisted after the U.S. equity markets closed, propelling Bitcoin above that crucial threshold.
Over the past 24 hours, Bitcoin has gained more than 4.5%, and in the past month, it has risen over 23%. This sharp rebound clearly contrasts with the downturn experienced back in April, when the cryptocurrency market faced significant challenges. The rally aligns with the overall recovery in U.S. equities, though the stock market witnessed a pullback on Wednesday.
Despite a slight sell-off on Wall Street, U.S. equities have experienced a bounce-back since late April; the S&P 500 has escalated by 15% while the tech-focused Nasdaq has jumped over 21%. Analysts connect this rebound to an emerging optimism concerning President Trump’s trade policies which, many believe, might indeed be more moderate than previously expected.
Earlier this month, steep tariffs were introduced, including a blanket 10% import tax alongside penalties targeting Chinese goods. However, a recent announcement from Treasury Secretary Scott Bessent indicated a 90-day pause on the most extreme measures following negotiations with Chinese officials—a move that seemed to restore confidence in the markets.
Shortly after the tariffs were revealed, Bitcoin hit a two-month low of $76,000, driven primarily by fears of a global economic slowdown. Despite its reputation as a safe haven asset, Bitcoin tends to follow the movements of riskier equities, particularly in the technology sector.
So, what is fuelling Bitcoin’s recent momentum? Some market experts, including Phil Wirtjes, CEO of Enclave Markets, suggest that this latest rally has been helped along by developments in cryptocurrency regulations, particularly bipartisan actions regarding stablecoin legislation. It appears a draft bill aimed at establishing clearer regulations for USD-backed digital tokens is gaining traction in the Senate, which would contribute to the bullish sentiment.
Additionally, institutional interest in Bitcoin has seen a marked increase, with spot Bitcoin ETFs attracting $329 million in inflows within just 24 hours. This dynamic could signal a growing confidence from more significant market players in the cryptocurrency space.
As Bitcoin continues its impressive ascent, it raises intriguing questions regarding the drivers behind this surge, balancing between macroeconomic trends and specific cryptocurrency developments. While clarity in regulation and ETF demand are crucial factors, the correlation with stock market performance suggests that the allure of risk-on assets remains a potent force for investors across both arenas.
