As conventional financial market participants adopted the largest cryptocurrency in the world, Bitcoin surged to an all-time high close to $112,000 late on Wednesday, supported by a rising risk appetite and enduring institutional demand.
It last saw a 0.4% increase at $111,259 after reaching a record high of $111,988.90.
Bitcoin has increased by more than 18% since the year started.
In a letter to clients on Wednesday, Anthony Pompliano, founder and CEO of Professional Capital Management, stated,
“Bitcoin is the only asset I am aware of where it becomes less risky as it grows in size,”
“When bitcoin’s market value was between $100 billion and $200 billion, there weren’t many smart capital allocators who could obtain exposure.
Since the asset is now valued in trillions, practically all capital allocators worldwide are able to purchase the exposure.
Overall, digital assets have increased thanks to the Trump administration’s crypto-friendly regulations, which have also opened up capital pools for the industry.
For example, according to a filing with the U.S. markets regulator on Tuesday, Trump Media & Technology Group that is run by the U.S. president’s family, plans to introduce an exchange-traded fund that will invest in a variety of cryptocurrency tokens, such as bitcoin, ether, solana, and ripple.
The surge in Bitcoin has extended to other cryptocurrencies.
The market capitalization of Ether, the second-largest digital currency, surged as well, reaching a one-month high of $2,794.95.
At $2,740.99, it was up 5.4% last time.
Stocks linked to cryptocurrency also increased.
Coinbase Global increased 5.4% to $373.85, while Strategy, co-founded by Michael Saylor, the main voice in the bitcoin treasury movement, increased 4.7% to $415.41.
