Why did Bitcoin just hit an all-time high?

Bitcoin surged past $110,000 on Wednesday evening, setting a new all-time high as crypto rallied hard.

The previous peak for Bitcoin (BTC), reached during President Donald Trump’s inauguration in January, was surpassed in late morning trading, according to crypto.news data. The buying momentum sustained after U.S. equity markets closed with the largest cryptocurrency by market cap pushing above $110,000.

Bitcoin has gained more than 4.5% in the past 24 hours and over 23% in the last month, reflecting a sharp reversal from April’s downturn.

U.S. equities

The rally mirrors the broader recovery in U.S. equities, despite Wednesday’s sell-off on Wall Street. Since late April, the S&P 500 has climbed 15%, while the Nasdaq is up more than 21%. Analysts attribute the bounce to growing optimism that President Trump’s trade policies may be less aggressive than initially feared.

After introducing steep tariffs in early April—including a blanket 10% import tax and additional penalties for Chinese goods—the White House signaled a partial retreat.

 A 90-day pause on the most severe measures was announced last week by Treasury Secretary Scott Bessent following negotiations with Chinese officials.

Bitcoin initially fell to a two-month low of $76,000 shortly after Trump unveiled the tariffs, reflecting market fears over a broader global slowdown. 

Despite Bitcoin’s reputation as a hedge against traditional financial assets, it often trades in tandem with risk-on equities, especially tech stocks.

What’s going on with Bitcoin?

Some of Bitcoin’s momentum appears driven by crypto-native catalysts. Enclave Markets CEO Phil Wirtjes said the rally was “likely aided by policy advancements,” particularly bipartisan progress on stablecoin legislation.

A draft bill that would establish clearer rules for USD-backed digital tokens has gained traction in the Senate.

Institutional demand has also picked up. Spot Bitcoin ETFs attracted $329 million in inflows over the last 24 hours. 

Bitcoin’s latest rally raises questions about how much of its performance is driven by macro versus crypto-native factors. 

While regulatory clarity and ETF inflows are key tailwinds, the correlation with stocks suggests that investor appetite for risk remains a dominant force in both arenas.