LONDON/NEW YORK, May 21 (Reuters) – Bitcoin soared to a new all-time high on Wednesday, surpassing its previous peak from January, as improving risk sentiment buoyed the broader cryptocurrency market following last month’s tariff-driven selloff.
The world’s leading cryptocurrency climbed to a record $109,760.08 before settling at $108,117, up 1.1% on the day. Analysts attributed the rally to a mix of factors, including easing trade tensions between the U.S. and China and Moody’s downgrade of U.S. sovereign debt — developments that have prompted investors to seek alternatives to the dollar.
“With January’s high now cleared and bitcoin having surged 50% from its April lows, the asset is in uncharted territory, propelled by institutional interest and a supportive U.S. regulatory landscape,” said Antoni Trenchev, co-founder of crypto trading platform Nexo.
Bitcoin’s trading pattern often mirrors that of tech stocks, which also benefit from improved investor sentiment. The tech-heavy Nasdaq index has jumped 30% since early April, reflecting the broader risk-on mood.
Adding to bitcoin’s momentum is continued dollar weakness, further boosting the cryptocurrency’s value against the U.S. currency. Industry observers also point to growing participation from traditional financial institutions as a catalyst for recent gains.
Notably, JPMorgan CEO Jamie Dimon — once a vocal critic of crypto — announced this week that the bank would allow clients to purchase bitcoin. Additionally, crypto exchange Coinbase was recently added to the S&P 500 index.
However, Coinbase also revealed on Monday that the U.S. Department of Justice has launched an investigation into a recent data breach at the company.
“We’re currently in the fourth year of bitcoin’s price cycle, the period following a halving event when miner rewards are cut in half,” Trenchev noted. “Historically, this phase brings strong performance, and despite lingering macro risks and market volatility, a $150,000 bitcoin target by 2025 remains within reach.”
In contrast, ether — the second-largest cryptocurrency — did not follow bitcoin’s lead, slipping 0.5% to $2,513.
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