Bitcoin rises to new record high, eclipses January top

That has also coincided with continued weakness in the dollar [File]
| Photo Credit: REUTERS

The price of Bitcoin rose to its highest level on record on Wednesday, eclipsing the previous high from January, as risk sentiment continues to improve after last month’s tariff-induced sell-off.

The world’s largest cryptocurrency touched a high of $109,481.83, a 2% gain on the day.

Bitcoin, at times, trades in a similar fashion to tech stocks and other assets that rise in value when investor sentiment is high. The tech-heavy Nasdaq is up 30% from its early April low.

That has also coincided with continued weakness in the dollar, a further boost for bitcoin’s exchange rate against the U.S. currency.

Crypto market participants often point to increased involvement from traditional financial firms as reasons for its gains.

This week they have referenced JPMorgan CEO Jamie Dimon, a long term crypto sceptic, saying its clients can buy bitcoin and crypto exchange Coinbase being added to the S&P 500 this month as being contributing factors.

Coinbase said on Monday the U.S. Department of Justice has opened a probe into a recent data breach at the company.