Bitcoin soared to a new all-time high during early Asian trading on Thursday, breaking past $124,000 on the back of favourable US legislation and a rally in US equities.
The world’s largest cryptocurrency surpassed its previous July peak, briefly touching $124,500 before easing back. The surge came after US stocks closed higher on Wednesday, with both the S&P 500 and tech-heavy Nasdaq hitting record levels earlier in the week.
Bitcoin’s rally has been fuelled in part by recent US regulatory changes under President Donald Trump, a staunch supporter of the crypto industry. The price has also been buoyed by so-called “whales” — large cryptocurrency holders who can influence market momentum.
“The crypto market is enjoying a period of highly favorable fundamentals,” said Samer Hasn, senior market analyst at XS.com.
“President Donald Trump has moved to end restrictions that previously prevented banks from doing business with companies flagged for reputational risk concerns, a category in which crypto firms were often unfairly placed,” he added.
Hasn noted that Trump may also “accelerate the integration of cryptocurrencies into the national financial system and lift additional restrictions, given his and his family’s growing involvement in the sector.”
High-profile companies have also joined the buying spree, with Trump’s media group and Tesla — led by billionaire Elon Musk — among a growing list of firms accumulating significant amounts of Bitcoin.
