Good News for Crypto Users as Bitcoin Hits Highest-ever Price in History
- Bitcoin reached over $112,000 for the first time, attracting investors seeking high returns and economic protection
- The rally extended to other cryptocurrencies like Ether and boosted crypto-related stocks such as MicroStrategy and Coinbase
- Despite the positive outlook, investors remain cautious, monitoring potential economic shifts and regulatory debates surrounding digital assets
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology, Banking and the Economy.
Bitcoin continued its record-breaking surge on Wednesday, reaching over $112,000 for the first time.
The cryptocurrency rose by 3.1%, bringing its total increase for the year to nearly 20%.
This growth highlights Bitcoin’s role as a popular choice for investors looking for both high returns and protection against economic uncertainty.
Source: UGC
Bitcoin competing wth traditional markets
The rise in Bitcoin’s value is part of a broader trend, with more capital being invested in digital assets and exchange-traded funds.
Investopedia reports that U.S. stocks, especially tech companies like Nvidia, also showed strong performance, helping push the S&P 500 closer to its record high.
The growing connection between tech stocks and cryptocurrencies reflects the current “risk-on” mentality, with investors putting money into high-growth sectors despite ongoing global risks.
Investors are largely ignoring recent tariff announcements by President Trump’s administration, focusing instead on the increasing institutional interest in digital assets.
Short-term options suggest further growth, with many traders betting on Bitcoin reaching $115,000 or $120,000 by the end of July.
The ongoing crypto rally has been beneficial for new Wall Street players and companies that use digital assets as part of their financial strategy.
Bitcoin’s price rise is helping these companies access more financing options, merging the world of cryptocurrency with traditional financial markets.
Bitcoin's rally affects other cryptos
According to Reuters, Bitcoin’s rise also boosted other cryptocurrencies. Ether, the second-largest digital currency, hit a one-month high of $2,794.95 before trading 5.4% higher at $2,740.99.
Crypto-related stocks saw gains as well. MicroStrategy, co-founded by Bitcoin advocate Michael Saylor, increased by 4.7% to $415.41, while Coinbase Global rose 5.4% to $373.85.
Source: Getty Images
Coinglass data showed that nearly $340 million worth of bitcoin short positions were liquidated across various exchanges within four hours of Bitcoin reaching its new all-time high.
Despite the optimism, investors are still watching for signs of profit-taking and potential economic shifts that could cause price corrections.
Bitcoin’s rise also occurs amid ongoing debates about regulation and its role in the global economy, with supporters arguing that the current market cycle is different, thanks to stronger regulations, wider institutional involvement, and more stable capital foundations.
SEC to generate revenue from crypto transactions
Meanwhile, Legit.ng reported earlier that the Securities and Exchange Commission (SEC) is working on updating its rules for cryptocurrencies.
The SEC acknowledged that bitcoin transactions will bring in significant tax revenue, although it did not specify how much.
Also, the commisison plans to expand cryptocurrency licensing, allowing citizens to trade on official, regulated exchanges where transactions will be taxed and monitored.
Proofreading by James Ojo, copy editor at Legit.ng.
Source: Legit.ng
