Bitcoin surged to a new record high on Wednesday, driven by a strong rally in tech stocks and renewed interest in riskier investments.
The cryptocurrency climbed as much as 1.9%, reaching $112,052.24 before markets closed, according to Coin Metrics, surpassing its previous peak set in late May.
This jump followed a broader market rally, particularly in the tech sector, where Nvidia briefly became the first company to hit a $4 trillion valuation, lifting the Nasdaq Composite to a record finish.
Investors brushed off concerns over former President Donald Trump’s tariff comments, instead focusing on opportunities in stocks and digital currencies.
Although billions have flowed into bitcoin ETFs in recent weeks, the currency’s price movement has been relatively modest, with only a 2% increase over the past month.
Interestingly, more bitcoin was bought directly by public companies in the last quarter than through ETFs, showing a shift in how big players are entering the market.
Bitcoin, often dubbed “digital gold,” has become increasingly attractive to institutions. Still, its value remains sensitive to shifts in overall market sentiment.
When investors are confident and chase high-growth stocks, cryptocurrencies tend to rise alongside them.
Looking forward, analysts see the second half of the year as potentially game-changing. More companies are expected to invest in bitcoin, and lawmakers in Washington are pushing forward long-awaited crypto regulations.
“With crypto week approaching in Washington and a wave of optimism heading into the summer, we could see prices leap to $120,000 or beyond by next week,” said Ryan Gorman, chief strategy officer at Uranium Digital.
“Bullish sentiment is running high, and with open call interest outpacing puts, traders are clearly betting on continued upward momentum.”