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Bitcoin continued its rally on Thursday, hitting a brand recent record high above $111,000.
Bitcoin hit $111,886.41 in early trading hours in London, in keeping with Coin Metrics, before paring a few of those gains to trade at around $111,012.00 at 07:03 a.m. London.
Bitcoin’s move has been “driven by a combination of positive momentum, growing optimism around U.S. crypto regulation, and continued interest from institutional buyers,” James Butterfill, head of research for crypto-focused asset manager CoinShares, told CNBC by email.
The worth rise in world’s largest cryptocurrency is going down despite a drop in U.S. stock markets on Wednesday.
Bitcoin has typically correlated with equity markets, particularly the tech-heavy Nasdaq.
The diverging movements of bitcoin and stocks could possibly be the results of investors on the lookout for alternative stores of value.
“The rally was also helped along by broader macro concerns, including Moody’s recent downgrade of U.S. sovereign debt, which added to the narrative of Bitcoin as a hedge against fiat instability,” Butterfill noted.
Rankings agency Moody’s cut the US’ sovereign credit standing last week.
There have been some positive developments for the crypto space on the regulatory front within the U.S. too. The GENIUS Act — a bill to manage stablecoins — cleared a key procedural vote within the Senate.
U.S. President Donald Trump and his AI and crypto czar David Sacks have pushed forward a pro-crypto agenda within the U.S., which has helped support the market.
Adding to upbeat news for crypto, JPMorgan CEO Jamie Dimon, a notable bitcoin skeptic, said that the bank will allow clients to purchase the digital currency.
This can be a developing story. Please check back for more.
– CNBC’s MacKenzie Sigalos contributed to this story.
