Bitcoin has reached a new record high, surpassing $125,000 for the first time. The cryptocurrency’s value surged to $125,689, exceeding its previous record of $124,480 set in mid-August.
This significant milestone is attributed to strong demand from institutional investors and friendlier regulations from the US government under President Donald Trump’s administration.
The US House of Representatives passed three landmark cryptocurrency bills in July, reversing years of government skepticism towards the crypto industry. This regulatory shift has led to increased investment in bitcoin, particularly in exchange-traded funds (ETFs). Growing inflows into these ETFs have strengthened demand for the cryptocurrency.
According to Joshua Lim, co-head of markets at crypto prime brokerage firm FalconX, “With many assets, including equities, gold, and even collectibles like Pokémon cards hitting all-time highs, it’s no surprise Bitcoin is benefiting from the dollar debasement narrative.” Investors are turning to alternative stores of value, such as bitcoin, gold, and collectibles, amid concerns about the US dollar’s value.
The recent gains in US shares have also supported bitcoin’s rise, boosting confidence in the cryptocurrency’s continued upward momentum. However, uncertainty surrounding the US government shutdown has clouded the outlook, delaying key data releases and driving investors to safe-haven assets.
Bitcoin’s surge comes as the US dollar retreated on Friday, posting multi-week losses against major currencies. The cryptocurrency has enjoyed a strong upward momentum, with investors cautious about the US government shutdown. Trump’s administration has been more open to cryptocurrencies, which has contributed to the recent price surge.
The market value of bitcoin has been fueled by growing institutional investment and favorable macroeconomic conditions. Analysts at JPMorgan have raised their year-end Bitcoin price target to $165,000, citing the cryptocurrency’s potential to track gold’s performance as investors hedge against dollar depreciation.
