Bitcoin Hits a New High! Bitcoin Strongly Breaks through $111,000, Driven by Multiple Positive Factors
Bitcoin continued its upward trend on Thursday, breaking through the $111,000 mark and reaching a new all-time high. Data from Coin Metrics shows that Bitcoin once rose to $111,886.41 during the day.
Unlike the previous rapid rallies, the increase in Bitcoin price in recent weeks has been slow and steady, mainly due to the continuous increase in holdings of crypto-assets by institutional investors and the trend of enterprises adopting cryptocurrencies.
Since this month, the key factors driving the upward trend of Bitcoin include the easing of Sino-U.S. trade tensions and Moody's downgrade of the U.S. sovereign credit rating, which have made Bitcoin and other "alternative stores of value" more favored.
James Butterfill, the research director of the crypto-asset management company CoinShares, said that the rise of Bitcoin is "a combination of a series of positive momentum, the improvement of the crypto-regulatory outlook in the United States, and the continued interest of institutional buyers."
Although the U.S. stock market fell on Wednesday due to the soaring yield of U.S. bonds and was under pressure again before trading on Thursday, the price of Bitcoin still went up. In the past, Bitcoin was usually positively correlated with the stock market, especially the Nasdaq index dominated by technology stocks.
The divergence between Bitcoin and the stock market this time may indicate that investors are looking for a new safe haven of value.
Since the beginning of this year, Bitcoin has accumulated a gain of more than 18%. Data from SoSoValue shows that, as of now in May, Bitcoin ETFs have had net capital inflows almost every day, with only two days of net outflows.
According to data from Bitcoin Treasuries, since the beginning of the year, the number of bitcoins held by listed companies has increased by 31%, with a total market capitalization of about $349 billion, accounting for 15% of the total supply of Bitcoin. The total supply of Bitcoin is limited to 21 million coins.
During his second term, President Trump of the United States has strongly promoted pro-crypto-currency monetary policies, providing support to the market. In addition, some states in the United States have begun to include Bitcoin in their reserve assets.
This week, the U.S. Senate voted to pass the first cryptocurrency legislation, aiming to establish a regulatory framework for stablecoins. Trump has previously said that he hopes to sign it into law before the congressional recess in August.#btc