NEW YORK :Bitcoin hit a new record high on Monday as the world’s largest cryptocurrency by market value continued to benefit from strong investor demand.
The rally since the start of the year has been fueled by institutional investors, friendlier policies under U.S. President Donald Trump, and a bitcoin’s increasing connection with global financial systems.
Bitcoin rose as high as $125,835.92 after climbing above $125,000 for the first time on Sunday. It was last up 2.02 per cent at $125,253.63, on course for the second straight session of gains. It has risen more than 33 per cent this year.
“Bitcoin is the hurdle rate. If you can’t beat it, you have to buy it. And I think the next 12 weeks are going to be very fun for bitcoin holders,” wrote Anthony Pompliano, founder and CEO of Professional Capital Management, in a letter to investors on Monday.
Bitcoin’s ascent has coincided with the weakness of the U.S. dollar against major peers as Trump’s tariffs on U.S. trade partners and uncertainty about their impact have prompted investors to diversify away from U.S. assets.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was flat at 98.09. It is down nearly 10 per cent this year.
“Bitcoin has surged ever since it briefly broke below $110,000 just over a week ago. The current rally means that Bitcoin has added around 13 per cent since 28th September,” wrote David Morrison, senior market analyst at FCA-regulated fintech and financial services provider Trade Nation, in emailed comments.
“Its daily MACD (Moving Average Convergence Divergence) has turned up sharply, and while this indicates a rise in upside momentum, it may be that bitcoin will need to consolidate before it has a chance to push up further.”
