Bitcoin reached a new all-time high on Thursday, driven by growing demand from institutional investors and supportive policies adopted by the U.S. administration under President Donald Trump toward digital currencies.
The world’s largest cryptocurrency surged to a record level of $112,743.49, and was recently trading 1.7% higher at $112,621.63.
Anthony Pompliano, founder and CEO of Professional Capital Management, told investors in a Wednesday note: “Bitcoin is the only asset that becomes less risky the larger it gets.” He added: “In the past, most large asset managers couldn’t gain exposure to Bitcoin when its market cap was between $100 and $200 billion. But now, with its value in the trillions, virtually every major asset manager in the world can allocate to it.”
Trump’s Policies Support the Crypto Sector
Supportive policies from the Trump administration have boosted investor confidence and unlocked fresh capital flows into the crypto space.
For instance, Trump Media & Technology Group (DJT.O), operated by the Trump family, is seeking approval to launch a new ETF that would invest in a range of cryptocurrencies, including Bitcoin, Ethereum, Solana, and Ripple, according to a filing submitted this week to the U.S. Securities and Exchange Commission.
Rally Extends to Other Cryptos and Crypto Stocks
The surge in Bitcoin extended to other digital assets as well:
Ethereum, the second-largest cryptocurrency by market cap, climbed to a one-month high of $2,794.95 and was last up 5.4% at $2,740.99.
The rally also lifted shares of crypto-linked companies:
MicroStrategy Inc. (MSTR.O), co-founded by Bitcoin advocate Michael Saylor, rose 4.7% to $415.41.
Coinbase Global (COIN.O) gained 5.4% to reach $373.85.
Public Companies Add Bitcoin to Their Treasuries
While some investors have started taking profits, several publicly listed firms — including Trump Media and GameStop — recently announced plans to purchase Bitcoin and add it to their corporate reserves.
One analyst told MarketWatch: “It’s turning into a race to see who can accumulate the most purchasing power.”
Economic and Trade Risks May Shape the Rally’s Future
Sid Powell, CEO and co-founder of Maple Asset Management, believes the continuation of the rally will largely depend on macroeconomic conditions and progress in trade negotiations.
He stated: “If trade talks stumble as we near the August 1 deadline set by President Trump, Bitcoin could face additional pressure.” However, if progress is made on trade deals and inflation data comes in soft — prompting the Federal Reserve to resume rate cuts — that could further support Bitcoin’s climb.
Powell also noted that Wednesday’s Bitcoin jump was driven by a “risk-on” sentiment, after minutes from the Federal Reserve showed most policymakers anticipate rate cuts later this year.
