Bitcoin hit a new record high on Thursday during early Asian trading, surpassing $124,000. This surge was primarily driven by favorable US legislation and a rise in US equities. The cryptocurrency briefly exceeded its previous record from July, reaching over $124,500 before pulling back slightly.
The rise in Bitcoin’s value coincided with a strong performance in the US stock market, where the S&P 500 and the tech-heavy Nasdaq index both reached new heights this week.
The recent increase in Bitcoin’s price has been significantly boosted by regulatory changes under US President Donald Trump, a vocal supporter of the crypto sector. The price has also been supported by large-scale purchases from major cryptocurrency holders, often referred to as “whales.”
According to Samer Hasn, a senior market analyst at XS.com, the crypto market is currently operating with “highly favourable fundamentals.” He noted that “President Trump has moved to end restrictions that previously prevented banks from doing business with companies flagged for reputational risk concerns, a category in which crypto firms were often unfairly placed.”
Hasn suggested that Trump may also be motivated to “accelerate the integration of cryptocurrencies into the national financial system and lift additional restrictions” due to his and his family’s increasing involvement in the sector. Among the growing list of companies buying significant amounts of Bitcoin are Trump’s media group and Tesla, the electric carmaker owned by tech billionaire Elon Musk.
