Bitcoin continues to break its all-time high records daily.
On Thursday, Bitcoin surpassed the 111,000 USD barrier for the first time ever.
According to CoinMetrics, Bitcoin peaked at 111,886.41 USD on that day.
While Bitcoin is consistently hitting new all-time highs, the current surge is not as steep as in the past.
Previous Bitcoin rallies showed steep increases fueled by institutional investment inflows and corporate adoption.
This time, indirect factors are driving the price up, including U.S.-China trade talks and Moody’s downgrade of the U.S. credit rating, resulting in a more measured ascent.
James Butterfill, head of research at crypto asset management firm CoinShares, told CNBC that Bitcoin’s rise is “driven by a mix of positive momentum, growing optimism around U.S. crypto regulation, and continued interest from institutional buyers.”
Bitcoin rose on Wednesday despite a downturn in New York stocks. As Wall Street tumbled due to surging Treasury yields, Bitcoin set a new record.
On Thursday morning, New York stock futures showed a bearish trend, but Bitcoin maintained its upward trajectory.
Typically, Bitcoin and the New York stock market, particularly the tech-heavy Nasdaq index, move together. However, their movements diverged due to recent U.S. policy uncertainties.
While the Nasdaq has slipped over 1.6% this year and the S&P 500 has dipped 0.4%, Bitcoin has surged more than 18%.
Bitcoin is also greatly benefiting from U.S. regulatory easing.
U.S. President Donald Trump and crypto czar David Sacks, who oversees crypto asset policy, are driving a crypto-asset friendly policy in the U.S.
This week, the U.S. Senate passed its first cryptocurrency legislation, establishing a regulatory framework for stablecoins.
Trump is pressuring Congress, urging swift action to enable him to sign the cryptocurrency bill before Congress recesses for summer in August.
As cryptocurrency gains pace entering into the mainstream, JPMorgan CEO Jamie Dimon, one of the leading skeptics, changed his stance and announced plans to allow customers to purchase cryptocurrencies through JPMorgan.
