No More Winter for Bitcoin? Cryptocurrency crosses $1,01,000 Price Level

Bitcoin hit another record high on Thursday as the cryptocurrency surpassed the $1,01,000 price level. The sharp increase came after the release of the US CPI (Consumer price index) inflation data, which largely remained in-line with industry expectations and stood at 2.7 per cent. This eventually increased investor sentiment around the prospects of a potential rate cut by the Federal Reserve.

Bitcoin's price has been steadily climbing since Trump won the US Presidential election last month. The cryptocurrency has soared by more than 50 per cent since the election result.

Notably, it's not just Bitcoin alone which is rallying on Trump's policy picture, but tech stocks as well. Nasdaq surpassed the 20k point milestone on Wednesday. Shares of major giants like Alphabet's Google and Elon Musk's Tesla also witnessed a similar increase and hit record-highs.

At the time of writing this piece, Bitcoin was trading around $100,894.69 price level, marking an increase of over 3 per cent from the previous day.

Bitcoin all-time-high

The cryptocurrency has made a comeback after nearly 2 years of subdued price movements. While Trump's re-entry has a lot to do with the rally, the recent comments of other major political figures have also played a major part in uplifting the investor sentiment.

Recently while commenting on the dominance of dollar in global currency reserves, Putin hinted at his inclination towards cryptocurrency during the plenary meeting.

"A legitimate question: why accumulate reserves if they can be lost so easily?" Putin pointed out during the investment conference.

He also criticised the US administration for using the dollar as a political tool, which eventually weakened its role as the global reserve currency. This has pushed many countries to explore other alternatives, including cryptocurrencies.

"For example, bitcoin. Who can prohibit it? No one," Putin said.

It's also worth noting that Bitcoin's returns have outpaced those of major assets, be it equities or commodities like gold. With a market cap nearing $2 trillion, Bitcoin remains the dominant cryptocurrency.