Bitcoin Surges to New High Amid Cooling Inflation and Improved US-China Relations

Bitcoin reached a record high on Thursday amidst increasing risk sentiments backdrop of the soft US inflation numbers and the slowing down of the US-China trade war.

Two other factors fueled the rise in price: US-based cryptocurrency exchange Coinbase was added to in the S&P 500 index and the US Senate approved legislation that regulates stablecoins, which is a type of cryptocurrency.

As of 8:30 at night Indian hours on Thursday evening, Bitcoin was trading around $110,947. This was some slight decline from the previous high of $111,861. The market capitalization of Bitcoin was $2.2 trillion, with a overall quantity totalling 19.86 million, as per CoinMarketCap.

"Now that January's record high was surpassed, and the 50 percent increase from April's lows has been realized, Bitcoin enters blue sky territory with tailwinds in shape of institutional momentum and an extremely favorable US regulatory framework," Antoni Trenchev, co-founder of the digital asset trading platform Nexo In an email to Reuters.

"We're still in the fourth year of the Bitcoin price cycle, which is the year following the bitcoin reduction in rewards for miners when they are cut in halfwhich historically indicates that the best days of Bitcoin are in the future. In spite of the risk of more volatility is still present the main concern, a goal of $150,000 by 2025 is possible," Trenchev said.

Sumit Gupta, co-founder of CoinDCX The CoinDCX co-founder said that the recent levels of Bitcoin could indicate the beginnings of a bull market for the cryptocurrency.

"Bitcoin made new highs" during Bitcoin Pizza Day, demonstrating an enormous increase in positive activity. The volume grew by over 100 percent over the last few days. Additionally that, the BTC supply on exchanges continues to decrease which suggests a potential supply shortage ahead."