Bitcoin, a representative cryptocurrency, continues to record all-time highs day after day.
On the 9th (local time), it first exceeded $112,000, and on the 10th, it further raised its peak to the $116,000 range.
Bitcoin has risen by more than 25% this year alone, and has increased by about 8% this month. Compared to falling to around $74,000 in April, it has surged nearly 60% in about three months.
The current Bitcoin price trend is moving in line with the rise of tech stocks in the New York stock market. While the Nasdaq index fell to the 15,500 level in May, it closed at 20,630.66 on the 10th of this month.
Nvidia, a leader in AI chips, has become the first global company to reach a market capitalization of $4 trillion, and major tech companies are breaking their all-time highs.
Bitcoin is continuing its upward trend along with the tech stock rally.
This is also attributed to a significant easing of risk asset preference sentiment, which had been constrained by Trump's trade war and economic uncertainty.
The 'trade war', which initially gave a big shock to the cryptocurrency market, is no longer having a significant impact on the market due to the learning effect of President Trump suspending mutual tariffs.
Moreover, President Trump signed an executive order in March promoting a government-level cryptocurrency strategic reserve, recognizing the value of cryptocurrencies including Bitcoin at the national level.
The US Senate passed the so-called Genius Act, a stablecoin regulation bill, last month and is now awaiting processing in the House of Representatives.
Stablecoins refer to cryptocurrencies whose value is fixed to a specific asset to minimize price volatility. They are primarily designed to have an exchange value fixed to the US dollar or euro.
Reuters reported that "Bitcoin's all-time high is due to increased demand from institutional investors and the Trump administration's pro-cryptocurrency policy".
Funds are also flowing into Bitcoin ETFs. Since the ETF launch in January last year, the cumulative net inflow of US Bitcoin spot ETFs is about $50 billion, with about $14.5 billion coming in this year alone.
