Bitcoin (BTC) has really spread its wings now. The original cryptocurrency hit $122,000 on Monday, extending four days of gains.
The move has resolved traders' query whether the asset could step out of the weekend's narrow trading range.
US support
Crypto continues to enjoy significant backing from the US, with President Donald Trump showing policy-based and personal support for the asset class. Bitcoin has climbed more than 60% since this year's 7 April low as financial market investors learned to absorb Trump's trade tariff communications without over-reacting to every social media post.
No shock from tariffs
This past weekend Trump threatened a new 30% tariff on the EU – by far its largest trading partner when collating the exports and imports of all 27 member states combined – which could damage European economic growth and worsen transatlantic relations. The two sides are working to a stated deadline of 1 Aug to determine what tariffs will actually be implemented by the US and whether the EU will impose countermeasures. European equities dropped at the market open, before largely paring losses by mid-morning.
Corporate buying
Bitcoin's stellar advance has also been fueled by companies acquiring billions of dollars worth of the coin to store in their corporate treasuries and by growing demand from institutional investors who are warming to the notion of crypto as a more mainstream, even regulated asset class. It traded at $122,540 as at 09:05 UTC.
Focus this week
The focus for crypto investors now shifts to this week's news flow from the US, where the Congress is holding a "Crypto Week" to address legislation aimed at legitimizing digital assets for institutional investors and supporting American business goals.
Economic data on US inflation and China's GDP could also influence sentiment and test whether investors continue to pile in on the daily all-time highs.
