On Wednesday morning, Bitcoin's price soared to a new record, exceeding $109,000. This surge was driven by tailwinds that have been boosting cryptocurrencies and other risk-on assets for the past two months.
The largest cryptocurrency by market capitalization reached $109,378 on Coinbase, marking a 4.5% increase in the last 24 hours. Bitcoin peaked at $109,500 before slightly retracting, showing an overall increase of nearly 25% over the past month.
According to Joe DiPasquale, CEO of BitBull Capital, the surge reflects growing institutional interest and a renewed risk appetite. He believes Bitcoin is transitioning from a speculative trade to a strategic allocation, viewed as a macro asset with long-term relevance.
The recent gains are attributed to investors reacting positively to U.S. President Donald Trump's retreat from his global trade war and encouraging inflation reports earlier this month. Bitcoin has also been seen as a hedge against macroeconomic uncertainties that could devalue the U.S. dollar.
In early April, Bitcoin reached a previous high of $108,786, fueled by optimism surrounding President Trump's promises to support the industry. However, it later fell below $75,000 due to concerns about his trade war and economic policies.
The trend reversed following positive inflation data and Trump's partial tariff reversals. Over the past month, Bitcoin and other cryptocurrencies have seen accelerated gains, mirroring trends in major equity indexes.
Ethereum and Solana also experienced gains of around 4% on Wednesday. Dogecoin outperformed Bitcoin with a 6% increase, while Cardano rose by 5%.
This article is based on our author's analysis of materials taken from the following resources: Decrypt, Coinbase, and CoinGecko.