Bitcoin reached a record high during early Asian trading on Thursday, surpassing $124,000, driven by favourable US legislation and a rally in US equities.
The cryptocurrency broke its previous July record, briefly touching $124,500 before easing back.
On Wednesday, US stocks closed higher, with both the S&P 500 and the tech-focused Nasdaq hitting fresh highs this week, adding momentum to Bitcoin’s rise.
Bitcoin’s recent surge has been fuelled by US regulatory changes introduced under President Donald Trump, a strong supporter of the cryptocurrency sector.
Large holders of Bitcoin, known as “whales”, have also boosted its price.
“The crypto market is enjoying a period of highly favourable fundamentals,” said Samer Hasn, senior market analyst at XS.com.
He noted that President Trump has moved to scrap restrictions that previously stopped banks from doing business with firms flagged for reputational risk — a category in which crypto companies were often unfairly placed.
Hasn added that Trump may seek to accelerate the integration of cryptocurrencies into the national financial system and remove further restrictions, given his and his family’s growing involvement in the industry.
Trump’s media company and Tesla, owned by tech billionaire Elon Musk, are among a growing list of corporations making substantial Bitcoin purchases.