Bitcoin Hits All-Time High, Up 2% as Risk Sentiment Improves

Bitcoin surged to an all-time high on Wednesday, surpassing its previous peak from January. This rise comes after a period of market risk sentiment improvement following a sell-off triggered by tariffs last month.

The largest global cryptocurrency reached a high of 109,481.83 USD, marking a 2% increase for the day. Bitcoin's performance often mirrors that of other risk assets, such as technology stocks, rising during periods of high investor sentiment. The tech-heavy Nasdaq index has rebounded 30% from its low point in early April.

This surge also coincides with the continued weakening of the US dollar, further boosting Bitcoin's exchange rate against the greenback. Participants in the cryptocurrency market often attribute price increases to the growing involvement of traditional financial companies.

This week, they cited several factors, including the change in stance by JPMorgan Chase CEO Jamie Dimon, who now allows his clients to purchase Bitcoin, and the inclusion of cryptocurrency exchange Coinbase in the S&P 500 index this month. Coinbase reported on Monday that the US Department of Justice has launched an investigation into a recent data breach at the company.