Bitcoin surged to a new record on Wednesday, touching $1,11,447.70, surpassing its previous peak from January. The world’s most valuable cryptocurrency has gained over 50% since April, propelled by improving global risk appetite and a flight to alternatives as doubts grow over the US dollar’s stability.
The rally comes in the wake of easing trade tensions between the United States and China, and a fresh blow to the greenback’s credibility after Moody’s downgraded US sovereign debt. The downgrade has driven a wave of capital into non-dollar assets, including gold, tech stocks—and now, crypto.
Antoni Trenchev, co-founder of crypto platform Nexo, told news agency Reuters that “Bitcoin has entered blue sky territory”. “There’s strong institutional momentum, and the regulatory environment in the US has turned notably more favourable.”
Bitcoin’s performance is increasingly mirroring that of tech stocks, which tend to benefit from positive investor sentiment. The Nasdaq is up 30% from its early April low, and Bitcoin is riding the same optimism wave, further buoyed by a weakening US dollar.
Adding to the bullish mood is the growing presence of traditional finance players in crypto. This week, JPMorgan CEO Jamie Dimon—a longtime crypto sceptic—confirmed the bank would allow clients to buy bitcoin. Earlier this month, Coinbase was officially added to the S&P 500, a landmark moment for the industry.
Despite a data breach at Coinbase currently being probed by the US Department of Justice, investor interest in crypto remains high.
Analysts say Bitcoin’s recent breakout also aligns with its historical price cycle. “We’re in year four of the Bitcoin halving cycle—the year when prices usually peak,” Trenchev said. “If past patterns hold, a target of $150,000 in 2025 is still firmly in play.”
In contrast, Ether, the second-largest cryptocurrency, failed to mirror Bitcoin’s gains and was last down 0.5% at $2,513. Bitcoin’s breakout reflects not just crypto optimism, but a broader shift in global capital flows.
