Summary Bitcoin just blew through its old high yesterday. It rose more than 4% to around $113,700, before easing back. A key long-term factor behind this is the Trump Administration’s friendlier regulatory approach to Bitcoin and other cryptos. That’s driving an increasing amount of institutional, corporate, and “mainstream money” into the asset class. The result is a flood of money heading into alternative stores of value of all types. That includes gold, silver, and cryptocurrencies. By Mike Larson Stocks? They recently hit all-time highs. Gold? It recently hit all-time highs (so did copper). Now, it’s Bitcoin’s turn! The benchmark cryptocurrency just blew through its old high yesterday. It rose more than 4% to around $113,700, before easing back, as you can see in the MoneyShow Chart of the Day. Bitcoin (YTD Chart) What “caused” the breakout? Nothing specific to the day itself. But a key long-term factor is the Trump Administration’s friendlier regulatory approach to Bitcoin and other cryptos. That’s driving an increasing amount of institutional, corporate, and “mainstream money” into the asset class. Other drivers include: The falling US dollar. It just suffered its worst first-half decline since 1973. Trump’s trade and tariff policies. They’re upending decades-long economic and financial market relationships. US moves to seize foreign assets, particularly Russian assets after the Ukraine invasion, are leading unfriendly and other wary nations to steer money away from US markets. Increasing bets on Federal Reserve interest rate cuts. As of yesterday, rate futures markets were pricing in a 67% chance the Fed cuts rates by a quarter point at its September policy meeting. Four more cuts could follow over the next year. The result is a flood of money heading into alternative stores of value of all types. That includes gold, silver, and cryptocurrencies. My advice? Don’t fight the powerful flood of money into alternatives. Embrace it. Original Post Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.
