Bitcoin rose through its previous high on Wednesday, reaching an intraday peak of $109,760.08 as investors sought refuge from a weakened dollar in the wake of a Moody’s downgrade of U.S. sovereign debt.
The world’s largest cryptocurrency was trading at $108,117, up 1.1 percent on the day, and more than 50 percent above its April lows.
The latest rally has been fuelled in part by easing trade tensions between the United States and China, which have restored risk appetite after last month’s tariff-related turmoil. Moody’s decision to cut its U.S. credit rating prompted a wave of diversification away from the dollar, driving demand for alternative assets such as bitcoin.
Institutional interest has been another key catalyst. Digital-asset platform Nexo co-founder Antoni Trenchev noted that “with January’s highs now in the rear-view mirror and bitcoin up over 50% from its April lows, the asset has entered ‘blue sky’ territory”, citing a friendlier U.S. regulatory landscape and growing corporate adoption as major tailwinds.
Tech stocks have mirrored bitcoin’s ascent, with the Nasdaq index up roughly 30% since early April, underscoring the improving sentiment among global investors. Concurrent weakness in the dollar has further accentuated bitcoin’s appeal as a hedge against currency debasement.
Traditional banks are also warming to digital assets. JPMorgan Chase announced on May 19 that it will enable clients to purchase bitcoin through their accounts, though the bank itself will not take custody, marking a notable shift from CEO Jamie Dimon’s long-standing scepticism. Meanwhile, Coinbase’s inclusion in the S&P 500 index represents another milestone, despite the exchange’s ongoing Department of Justice inquiry over a recent data breach.
Looking ahead, market analysts remain optimistic. Bitcoin is now in the fourth year of its typical price cycle following a halving event, which historically precedes major bull runs. Trenchev believes a $150,000 price target in 2025 remains within reach, even as macroeconomic uncertainties persist. By contrast, Ether lagged, trading down 0.5 percent at $2,513.
