The Bitcoin cryptocurrency set a record high of more than $109,000 during Wednesday morning trading while continuing its climb in value in May. File Photo by John Angelillo/UPI | License Photo
Bitcoin initially rose to $109,857 in value during trading Wednesday morning as trade war tensions eased between the United States and China and a recent U.S. credit downgrade.
“Bitcoin’s new high has been concocted by an array of favorable ingredients in the macro cauldron,” Nexo crypto exchange co-founder Antoni Trenchev told CNBC.
“Softer U.S. inflation numbers, a de-escalation in the U.S.-China trade war and the Moody’s downgrade of U.S. sovereign debt … has put the spotlight on alternative stores of value like Bitcoin,” Trenchev said.
Bitcoin eased in value during afternoon trading at $106,678.74 after reaching its new all-time high during morning trading.
The record price represented a 3% increase in Bitcoin’s value during morning trading, but much of that increase receded by about an equal amount by the end of trading.
Bitcoin has recorded a 26% rise in value over the past 30 days and reached its current record value nine days after the Trump administration on May 12 announced a 90-day trade agreement with China on May 12, according to Cointelegraph.
Bitcoin was trading for $74,434 on April 7 and just five days after President Donald Trump announced his reciprocal tariffs trade policy on April 2.
Recent trade war de-escalation, improved regulatory oversight and the possibility of cease-fire talks between Russia and Ukraine have helped Bitcoin to being its 26% climb in value so far in May, said Jag Kooner, derivatives leader at Bitfinex exchange.
“The Russia-Ukraine cease-fire talks have defused one of the primary geopolitical volatility engines of the past two years,” Kooner told Cointelegraph.
“We’re seeing capital rotate into [Bitcoin] and high-beta tech as the need for geopolitical hedging fades, but liquidity remains abundant,” Kooner said.
While Bitcoin achieved an all-time high early Wednesday, Dogecoin posted a larger percentage gain during the day’s trading.
Dogecoin rose 6% in value over the past 24 hours, but that value is just 23 cents for the meme coin, according to decrypt.
The increased interest and investment in cryptocurrency follow GOP lawmakers’ recent introduction of legislation to create a national strategic Bitcoin reserve to improve the nation’s finances.
