NEW YORK (Reuters) -Bitcoin hovered near its record high on Monday as the world’s largest cryptocurrency by market value continued to benefit from strong demand from investors.
The rally in bitcoin since the start of the year has been underpinned by flows from institutional investors, friendlier policies of the administration of U.S. President Donald Trump, and an increasing connection with global financial systems.
Bitcoin climbed above $125,000 for the first time on Sunday, rising to $125,653.32. It was last up 1.88% to $125,081.85, on course for the second straight session of gains. It has gained more than 33% this year.
“Bitcoin is the hurdle rate. If you can’t beat it, you have to buy it. And I think the next 12 weeks are going to be very fun for bitcoin holders,” wrote Anthony Pompliano, founder and CEO of Professional Capital Management, in a letter to investors on Monday.
Bitcoin’s ascent has coincided with the weakness of the U.S. dollar against major peers as some investors sought to diversify away from U.S. assets in the wake of uncertainty in trade tensions from Trump’s tariffs.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, was flat at 98.12. It is down nearly 10% this year. [FRX/]
“Bitcoin has surged ever since it briefly broke below $110,000 just over a week ago. The current rally means that Bitcoin has added around 13% since 28th September,” wrote David Morrison, senior market analyst at FCA-regulated fintech and financial services provider Trade Nation, in emailed comments.
“Its daily MACD (Moving Average Convergence Divergence) has turned up sharply, and while this indicates a rise in upside momentum, it may be that bitcoin will need to consolidate before it has a chance to push up further.”
(Reporting by Chibuike Oguh and Gertrude Chavez in New York; Editing by Chizu Nomiyama and Chris Reese)
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