Key Points
- Bitcoin hit a new record high of $109,760.08, surpassing January’s peak.
- Easing U.S.-China tensions and Moody’s U.S. debt downgrade have fueled demand for alternative assets.
- Nasdaq’s 30% rise and a weakening dollar reflect broader risk-on investor behavior—Coinbase’s addition to the S&P 500 signals further crypto mainstream adoption.
- Analysts target Bitcoin to reach $150,000 in 2025, while Ether saw a minor decline.
Bitcoin surged to a new all-time high on Wednesday, surpassing its previous January peak and touching $109,760.08 before slightly retreating to $108,117, marking a 1.1% intraday gain. This record-breaking rally follows a significant recovery in investors’ risk appetite, fueled by easing U.S.-China trade tensions and macroeconomic shifts that favor alternative investments.
One key catalyst was Moody’s downgrade of U.S. sovereign debt, which led many investors to seek refuge from the weakening dollar. As a result, Bitcoin, often seen as a digital hedge, has benefited from growing interest, especially from institutional investors.
Antoni Trenchev, co-founder of digital asset platform Nexo, remarked that Bitcoin has entered “blue sky territory.” With Bitcoin now beyond its January high and up over 50% since April, he cited strong institutional momentum and a favorable regulatory landscape in the U.S. as contributing factors.
Bitcoin’s performance has mirrored gains in the tech-heavy Nasdaq index, which is up 30% from its April lows. This reflects a broader return of investor confidence in high-risk, high-reward assets. At the same time, the dollar index (DXY) continues to show weakness, further enhancing Bitcoin’s relative appeal.
Adding to the bullish sentiment is traditional financial firms’ growing embrace of Bitcoin. Notably, JPMorgan Chase CEO Jamie Dimon, historically a crypto skeptic, announced the bank will now allow clients to buy Bitcoin. Coinbase, a major crypto exchange, was recently added to the S&P 500, signifying mainstream acceptance.
Despite macroeconomic uncertainties and potential volatility ahead, analysts remain optimistic. Trenchev suggested that 2025 could see Bitcoin climbing to $150,000, following historical patterns tied to the Bitcoin halving cycle, which typically fuels post-halving price rallies.
Meanwhile, Ether (ETH), the second-largest cryptocurrency, failed to follow Bitcoin’s lead, slipping 0.5% to $2,513, signaling a divergence in performance among major digital assets.
