Bitcoin hits new all-time high of $111,300
What's the story
Bitcoin has reached a new all-time high of $111,333, breaking its previous record set in January this year. According to data from CoinMarketCap, the cryptocurrency's value has risen by over 4% in the last 24 hours. Mirroring Bitcoin's movement, other tokens such as Ethereum, XRP, Solana, and Dogecoin have also gained up to 4.5% The spike in Bitcoin's value comes amid a general positive sentiment in the market and a massive surge in technology stocks.
Market correlation
Bitcoin's rise mirrors trends in technology stocks
Bitcoin is often considered a high-risk, high-reward asset. Its recent surge is similar to the trends in technology stocks, which have gained a whopping 30% from their April lows. This correlation indicates that when investor appetite strengthens, Bitcoin tends to follow the same upward trajectory as tech-heavy Nasdaq index.
Currency impact
Weak US dollar fuels Bitcoin's global value
The recent surge in Bitcoin's value can be partly attributed to a weakening US dollar, which has boosted its value in global markets. This currency fluctuation has added momentum to Bitcoin's upward trend. Not to mention, increasing interest from traditional financial institutions is also supporting this positive trend for the cryptocurrency.
Institutional interest
JPMorgan CEO acknowledges Bitcoin's acceptance
In a major endorsement of cryptocurrency, long-time skeptic JPMorgan CEO Jamie Dimon recently admitted that clients can now buy Bitcoin. Meanwhile, crypto exchange Coinbase's impending inclusion in the S&P 500 index is also being seen as another sign of mainstream acceptance for Bitcoin and other cryptocurrencies.
Regulatory scrutiny
Coinbase faces probe amidst index inclusion celebration
Despite celebrating its inclusion in the S&P 500 index, Coinbase has confirmed it is facing a probe by the US Department of Justice after a recent data breach. The regulatory scrutiny comes just as Bitcoin's latest milestone is being closely monitored by both investors and institutions. The development highlights growing calls for clearer crypto regulation in major economies like the US.