$BTC Why did the price of Bitcoin reach an all-time high?
The price of Bitcoin surpassed $110,000 on Wednesday, achieving a new historical peak, supported by several factors:
Recovery in U.S. stock markets: Despite the volatility on Wall Street, the S&P 500 and Nasdaq indices rose by 15% and 21% respectively, enhancing the high-risk investment climate that Bitcoin benefits from.
U.S. trade policies: The Trump administration began to roll back some of the severe tariffs on China, alleviating economic fears and helping to restore confidence in the market.
Factors within the cryptocurrency market:
Advancements in legislation regarding stablecoins in the U.S. Congress.
Increased institutional demand, with over $329 million flowing into Bitcoin ETFs within 24 hours.
Correlation with tech stocks: Although Bitcoin is viewed as a hedge, it still largely moves in tandem with technology stocks in the markets.
Conclusion: A combination of improvements in U.S. policies, momentum in the stock market, and regulatory and legislative support in the crypto world has led to this record rise.
The news was written by https://crypto.news/author/micah-zimmerman/