Bitcoin continued its rally on Thursday, hitting a new all-time high above $111,000.
The price of the leading cryptocurrency jumped 3 percent to $111,529.78, according to Coin Metrics. It previously hit a high of $111,886.41.
Bitcoin’s rapid rise has set new records that are familiar to Bitcoin observers. But in recent weeks, the price of Bitcoin has been slow to rise as more institutions own the digital asset and more organizations use it. Easing trade tensions between the U.S. and China and Moody’s downgrading the U.S. national debt, which highlighted alternative stores of value such as Bitcoin, have been key drivers this month.
James Butterfill, head of research at crypto-focused asset management firm CoinShares, told CNBC in an email that Bitcoin’s rally was “driven by a combination of positive momentum, increased confidence in U.S. crypto regulation, and continued interest from institutional buyers.”
The rally in the world’s largest cryptocurrency comes despite a drop in U.S. stocks on Wednesday. That was helped by a spike in Treasury yields, which continued to pressure stock futures on Thursday morning.
Bitcoin is typically correlated with the stock market, particularly the tech-heavy Nasdaq. The divergence between bitcoin and stocks could be a result of investors looking for alternative stores of value.
Bitcoin is up more than 18% this year. Bitcoin ETFs have seen strong and consistent inflows, with only two days of outflows in May, according to SoSoValue. And since the beginning of the year, the amount of bitcoin held by public companies has increased by 31% to about $349 billion, according to Bitcoin Treasuries, which account for 15% of the total bitcoin supply.
US President Donald Trump and AI and crypto expert David Sacks have pushed a pro-crypto agenda in the US, which has helped support the market.
This week, the Senate voted to pass its first crypto bill, which would create a regulatory framework for stablecoins. Trump has said he wants to see crypto regulation on his desk and is ready to sign it by August. Before Congress adjourned, Coinbase also joined the S&P 500 this week, in what supporters are hailing as a pivotal moment for the crypto industry.
JPMorgan CEO Jamie Dimon, a crypto skeptic, said the bank will allow customers to buy digital currencies.