Cryptocurrency rallies to new all-time high despite equity market slump and broader macroeconomic concerns
Bitcoin (BTC.X) continued its historic rally on Thursday, surging to a record high of $111,886.41 during early trading in London, according to data from Coin Metrics. Although it later pulled back slightly, it remained strong at $110,900.99 by 11:31 a.m. London time.
This latest surge marks a significant divergence from the U.S. equity markets, which declined on Wednesday. Traditionally, Bitcoin has moved in tandem with major indexes like the tech-heavy Nasdaq. However, the current market action suggests investors are increasingly viewing Bitcoin as a hedge against traditional financial risks and macroeconomic instability.
“The rally has been driven by a mix of positive momentum, growing optimism around U.S. crypto regulation, and continued interest from institutional buyers,” said James Butterfill, Head of Research at CoinShares, in a note to CNBC.
Adding fuel to the crypto surge are broader economic concerns. Moody’s recently downgraded the U.S. sovereign credit rating, raising fresh questions about the stability of fiat currencies. Butterfill highlighted that this downgrade reinforced Bitcoin’s narrative as a potential safe-haven asset during periods of fiat uncertainty.
On the regulatory front, there have been several developments supporting the crypto space in the United States. The GENIUS Act — a bill aimed at establishing regulatory guidelines for stablecoins — recently passed a key procedural vote in the Senate. Additionally, the pro-crypto stance from political figures such as former President Donald Trump and his AI and crypto adviser David Sacks has provided further support for the sector.
In a surprising move, JPMorgan CEO Jamie Dimon — long known as a critic of Bitcoin — announced that the banking giant will now permit clients to purchase the digital asset. The policy shift from such a major financial institution is seen as a strong vote of confidence in the legitimacy and longevity of cryptocurrencies.
Bitcoin’s rise beyond $111,000 underscores a growing shift in sentiment among both retail and institutional investors. While short-term volatility remains likely, the digital asset’s resilience and increasing integration into traditional finance point to a maturing market with continued upside potential.
As regulatory clarity improves and institutional adoption deepens, Bitcoin’s role in the global financial system is evolving — and today’s price milestone is a clear sign of that transformation.
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