Bitcoin rose to its record high on Thursday amid improving risk sentiments on the back of softer US inflation numbers and de-escalation of the US-China trade war.
Two other factors fuelled the rally: US-based crypto exchange Coinbase joined the S&P 500 index and the US Senate advanced the legislation to regulate stablecoins, a form of cryptocurrency.
At 8:30 pm Indian time on Thursday, Bitcoin was trading at around $110,947, having seen a slight correction from the day’s high of $111,861. Bitcoin’s market capitalisation stood at $2.2 trillion with a total supply of 19.86 million, according to CoinMarketCap.
“Now that January’s high has been surpassed and the 50 per cent upside from April’s lows has been achieved, Bitcoin enters blue sky territory with tailwinds in the form of institutional momentum and a very favourable US regulatory environment,” Antoni Trenchev, co-founder of digital asset trading platform Nexo, said in an emailed comment to Reuters.
“We’re still in year four of the Bitcoin price cycle — the year after the bitcoin halving when miner rewards are slashed in half — which historically means its best days are still ahead of it. While macro uncertainty and the threat of further volatility remains, a target of $150,000 in 2025 is still very much on the cards,” Trenchev said.
Sumit Gupta, co-founder of CoinDCX, said the new highs of Bitcoin could signal early phases of a bull run for the cryptocurrency.
“Bitcoin formed new highs on Bitcoin Pizza Day, demonstrating a huge increase in the bullish activity. The volume increased by more than 100 per cent in the past couple of days. Besides, the BTC supply on the exchanges continue to diminish; that signals a potential supply squeeze ahead.”
