New York (Reuters) -Bitcoin hit a new record on Monday, as the world’s largest cryptocurrency by market value continued to benefit from strong investor demand.
The rally since the start of the year has been fueled by institutional investors, friendlier policies under US President Donald Trump, and a bitcoin’s growing connection to global financial systems.
Bitcoin rose as high as $125,835.92 after rising above $125,000 for the first time on Sunday. It lasted up 2.02% to $125,253.63, on course for the second consecutive session of gains. It has increased more than 33% this year.
“Bitcoin is the hurdle rate. If you can’t get over it, you have to buy it. And I think the next 12 weeks will be a lot of fun for Bitcoin holders,” Anthony Pompliano, founder and CEO of Professional Capital Management, wrote in a letter to investors on Monday.
Bitcoin’s rise has coincided with the US dollar’s weakness against major peers, as Trump’s tariffs on US trading partners and uncertainty over their impact have led investors to diversify away from US assets.
The dollar index, which measures the greenback against a basket of currencies including the yen and euro, was steady at 98.09. It is down almost 10% this year. (Frx/)
“Bitcoin has risen since briefly breaking below $110,000 just over a week ago. The current rally means Bitcoin has added around 13% since September 28,” wrote David Morrison, senior market analyst at Regulated FinTech Nation and Financial Services Nation, in emailed comments.
“Its daily MACD (moving average convergence divergence) has risen sharply, and while this indicates an increase in upward momentum, it may be that Bitcoin needs to consolidate before it has a chance to rise further.”
(Reporting by Chibuike Oguh and Gertrude Chavez in New York; Editing by Chizu Nomiyama, Chris Reese and Richard Chang)
(Tagstotranslate) Donald Trump (T) Institutional investors (T) Bitcoin (T) Professional capital management (T) Investor demand