Bitcoin, the world’s largest cryptocurrency by market value, hit a record high on Sunday and reached $125,689.
Bitcoin’s previous record was $124,480 in mid-August, buoyed by friendlier regulations from US President Donald Trump’s administration and strong demand from institutional investors.
The cryptocurrency had risen on Friday for an eighth straight session, bolstered by recent gains in US equities and inflows into bitcoin exchange-traded funds.
In contrast, the US dollar retreated on Friday, posting multi-week losses against major currencies, as uncertainty surrounding a US government shutdown clouded the outlook and delayed key data releases, such as payrolls, critical for gauging the economy’s direction.
Bitcoin has enjoyed a strong upward momentum, with investors cautious about the US government shutdown.
Gains in US shares have also supported bitcoin’s rise, while investors have looked to safe-haven assets while US lawmakers negotiate over funding the federal government, Bloomberg News said.
US President Donald Trump and his family have also been big promoters of cryptocurrencies and are involved in various crypto endeavours that have inflated his wealth.
Trump’s embrace of digital assets has reversed years of US government scepticism towards the crypto industry under his Democratic predecessor Joe Biden, with the US House of Representatives passing three landmark cryptocurrency bills in July.
These regulatory changes have seen the value of bitcoin soar.
“With many assets, including equities, gold and even collectables like Pokemon cards hitting all-time highs, it’s no surprise Bitcoin is benefiting from the dollar debasement narrative,” Joshua Lim, co-head of markets at crypto prime brokerage firm FalconX, was quoted by Bloomberg News as saying.
