Bitcoin record: $112,000 value for the first time

Frankfurt/Main. Bitcoin has reached the $112,000 mark for the first time. "The prospect of further easing of regulatory restrictions on US soil is keeping risk appetite alive," market analyst Timo Emden commented on the ongoing record-breaking run of the oldest and best-known cryptocurrency.

"The fact that a draft regulation of crypto assets is currently being debated in the US Senate despite economic crises underscores the high importance of Bitcoin and other cryptocurrencies under the leadership of US President Donald Trump," Emden said. If the rally continues, investors could soon set their sights on the $120,000 mark. However, he warned that removing regulatory hurdles also brings risks.

"Bitcoin is no longer a niche asset," said Eric Demuth, CEO and co-founder of the crypto exchange Bitpanda. "This all-time high is not a peak, but a foundation. Behind it is the clear signature of the United States, which now views crypto and digital assets as a core strategic theme of its financial and economic policy."

On Wednesday, Bitcoin surpassed its January record high on hopes of easing crypto regulations in the US, and the price rose above the $110,000 mark for the first time.

Experts pointed to a draft regulation of cryptocurrencies currently being debated in the US Senate. There is hope that such legislation will be passed later this week.

Since Donald Trump's election as US president in November, the Bitcoin price has increased by around 60 percent. The US president is considered a supporter of cryptocurrencies and, during his election campaign, promised less regulation and a government Bitcoin reserve.

In April, however, an escalation in the trade conflict with China, triggered by the US administration under Trump, temporarily pushed the Bitcoin price down to around $74,000. However, recent progress in negotiations between Beijing and the United States ended this period of weakness.

Bitcoin currently has a total valuation of $2.2 trillion, dominating the cryptocurrency market. According to CoinMarketCap, the market capitalization is around $3.5 trillion.

RND/dpa