Bitcoin has rallied to a new all-time high of $110,000.
The value of the cryptocurrency increased by just under 3% on Thursday, on the back of renewed optimism about future regulation of cryptocurrencies in the US.
The price increase is also due to surging demand from investors. Michael Saylor’s MicroStrategy has accumulated more than $50 billion of Bitcoin, and a wide variety of smaller investors are financing Bitcoin purchases using a number of different means, including convertible bonds and preferred stocks.
According to market analyst Tony Sycamore, the record high demonstrates that Bitcoin’s steep decline from its previous high in January to below $75,000 in April was simply a correction within a bull market.
“A sustained break above $110,000 is needed to trigger the next leg higher towards $125,000,” he added.
Donald Trump embraced cryptocurrency during his campaign, as he promised to make the US the “crypto capital of the planet” and build a national stockpile of Bitcoin.
The crypto industry spent nearly $120 million backing pro-crypto candidates in the election. That campaign was largely a success, and saw the unseating of avowed enemies of crypto like Senate Banking Chair Sherrod Brown in Ohio, and wins for pro-crypto candidates in Michigan, West Virginia, Indiana, Alabama and North Carolina.