Bitcoin has rallied to another all-time high helped by rising demand from institutional investors as well as friendly policies of the administration of US President Donald Trump.
In March, Trump signed an executive order to establish a strategic reserve of cryptocurrencies.
He has also appointed several crypto-friendly individuals, including Securities and Exchange Commission Paul Atkins and White House artificial intelligence czar David Sacks.
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Trump’s family businesses have also made forays into cryptocurrencies.
Trump Media & Technology Group is looking to launch an exchange-traded fund that will invest in multiple crypto tokens including bitcoin, according to an SEC filing on Tuesday.
The world’s largest cryptocurrency rose to a fresh record high of $US113,734.64.
Bitcoin on Wednesday evening passed the $US112,000 mark for the first time since it first came onto the market 15 years ago.
Timo Emden, of Emden Research, wrote that hopes of a major advance in the tariff conflict between the United States and its main trading partners was moving the market and increasing willingness to take risks.
Lukas Enzersdorfer Konrad, deputy chief executive of Bitpanda, Europe’s largest cryptocurrency broker, said “Bitcoin’s latest rise is not a coincidence.”
He attributed the increase to favourable macroeconomic conditions and an ongoing rise in interest by institutional investors.
Bitcoin reached close to the $US112,000 level in May before falling back again.
Bitcoin was introduced to the market by an unknown person or group using the pseudonym Satoshi Nakamoto in 2009.
Rather than being issued by a central bank, it is administered by a global computer network.
Transactions are done by blockchain – a public and secure database.
The cryptocurrency is finding use in a way similar to that of gold – for speculation and as a store of value.
The maximum number of bitcoins is limited to 21 million, a figure that cannot be changed.
The limit is intended to prevent inflation and secure the long-term value of the cryptocurrency.
The value of bitcoin in US dollars is up about 21 per cent this year.