This illustration photograph taken on November 22, 2024 in Istanbul shows physical banknotes and coin imitations of the Bitcoin crypto currency. (Photo by Ozan KOSE / AFP)
LONDON, United Kingdom — Bitcoin hit a record high on Wednesday, driven by a wave of optimism over cryptocurrency legislation in the United States.
The world’s most popular cryptocurrency surged to an all-time peak of $109,499.76, surpassing its previous high set on January 20 when Donald Trump was sworn in as US president.
Bitcoin gained after US policymakers showed greater bipartisan support for a cryptocurrency bill on the regulation of so-called stablecoins, digital coins whose value is tied to the dollar, according to analysts.
This has sparked fresh hopes for regulatory clarity in the sector, including for bitcoin, which is not directly linked to the dollar.
The digital currency has also been buoyed by a more favorable macroeconomic environment, as investors’ appetite for riskier assets has returned following an easing of tensions between the US and its key trading partners.
Trump vowed to support crypto currencies during his campaign for a second White House term.
READ: States could see crypto policy blitz in 2025 in spite of the risks
But a wave of US tariffs unleashed on countries around the world dampened financial markets, causing a wave of uncertainty.
Uncharted territory
Bitcoin broke back through the symbolic $100,000 threshold on May 8 for the first time since February, as Britain and the United States unveiled a trade deal.
Cryptocurrencies have made headlines since their creation, gaining attention for their extreme volatility and the collapse of several industry giants, foremost among them the FTX exchange platform.
The digital currency is created — or “mined” — as a reward when powerful computers solve complex problems to validate transactions made on a meddle-proof register known as the blockchain.
READ: From critic to investor: Trump welcomes crypto leaders to White House