Bitcoin has surged to an all-time high, crossing the $124,000 threshold during early Asian trading on Thursday, driven by favourable US legislative shifts and a boom in US equities.
The cryptocurrency briefly hit $124,500 before retracting, surpassing its previous record set in July.
“The crypto market is enjoying a period of highly favourable fundamentals,” said Samer Hasn, a senior market analyst at XS.com. He attributed the rise to the regulatory changes under US President Donald Trump, a notable supporter of the crypto sector.
US stocks, particularly the S&P 500 and the Nasdaq, also reached new heights this week, further fuelling Bitcoin’s rise. Trump’s administration has lifted restrictions preventing banks from transacting with companies, including crypto firms, previously flagged for reputational risks.
This regulatory shift is seen as a major victory for the crypto industry, which has been lobbying for greater integration into the traditional financial system. Large holders of cryptocurrency, commonly known as “whales,” have also played a role in the recent price surge.
Tesla, led by tech mogul Elon Musk, and Trump’s media group are among companies increasingly investing in Bitcoin. With such high-profile players backing the digital currency, experts predict that Bitcoin’s value may continue its upward trajectory.
“Trump may also accelerate the integration of cryptocurrencies into the national financial system, especially given his personal and family’s growing involvement in the sector,” Hasn added.
Bitcoin’s rise continues to capture global attention, as it challenges traditional financial systems and solidifies its place as a leading digital asset in the ever-evolving global economy.
