Bitcoin reaches a new all-time high of more than $109,000
The price of the cryptocurrency surprised again four months after the last milestone.
The administration ordered the creation of a Bitcoin reserve.
Bitcoin hit an all-time high this Wednesday, buoyed by a wave of optimism about cryptocurrency-related legislation in the country.
The world's most popular cryptocurrency rose to an all-time high of $109,499.80, surpassing its previous high set on Jan. 20, when Donald Trump was inaugurated as U.S. president.
Bitcoin, the largest cryptocurrency by market capitalization, was recently trading at $109,378 on exchange platform Coinbase, up 4.5% in the last 24 hours. According to Coinbase, BTC peaked at $109,500 before slowing. Bitcoin is up nearly 25% in the last month.
Investors and Trump's de-escalation of his global trade war
The latest gains come as investors, buoyed by Trump's de-escalation in his global trade war and encouraging inflation reports earlier this month, have returned to investing in risk assets. Bitcoin has also benefited as investors have seen it more as a hedge against macroeconomic uncertainties that have threatened to undermine the value of the U.S. dollar.
In April, the cryptocurrency plunged below $75,000 on growing investor uncertainty regarding the global trade war and other economic policies that many analysts said would raise prices and slow the world's economy.
The trend began to reverse shortly after encouraging data on inflation and Trump's partial withdrawal of tariffs imposed on its major trading partners. Bitcoin and other cryptocurrencies' gains have accelerated over the past month, as have those of major stock indices.
Ethereum and Solana are showing similar gains to Bitcoin on the day, both up around 4%, while Dogecoin is outperforming Bitcoin with a 6% gain, and Cardano is also up 5%.
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