(NEW YORK) — Bitcoin surged to a record high on Thursday, vaulting more than 3% in early trading and hurtling past $110,000 for the first time.
The price of bitcoin stood at $111,385 on Thursday, extending a sharp rise that stretches back to the November election of President Donald Trump, a cryptocurrency supporter and investor.
Ether, the second-largest cryptocurrency, jumped 6%. The $TRUMP memecoin, a crypto coin launched by the president in January, increased nearly 6%.
A surge in the value of some cryptocurrencies in recent days followed a Senate vote to advance the GENIUS Act, an industry-backed bill that aims to regulate some digital currency.
The measure establishes rules targeting stablecoins, a type of cryptocurrency pegged to the value of another asset, often the U.S. dollar.
If enacted, the bill could allow such crypto coins to become a mainstream tool for digital payments and other financial instruments, setting the stage for an influx of investment in digital currency.
Critics say the measure fails to address conflict-of-interest concerns exemplified by Trump, and it risks endangering consumers and the wider economy with a weak set of restrictions.
Trump, who also backs a cryptocurrency firm World Liberty Financial, has denied any wrongdoing involving his crypto ventures.
The record high for bitcoin also coincides with a spike in Treasury yields amid deficit concerns centered on a domestic policy bill passed by the U.S. House on Thursday.
The nonpartisan Congressional Budget Office on Tuesday found the tax policies backed by Trump would add $3.8 trillion to the national debt. The finding comes days after a U.S. credit downgrade at Moody’s in part due to the country’s deficit.
Higher yields increase the cost of U.S. borrowing and add strain to the nation’s finances. In theory, investors may seek out alternatives to the U.S. dollar as debit yields face upward pressure.
Bryan Armour, the director of passive strategies research at financial firm Morningstar, attributed the recent rise in the price of bitcoin to both industry regulation and bond market fears.
“I suspect it’s a mix of regulatory adoption and fear for the dollar given the expectation of high government spending,” Armour said.
The price of bitcoin has surged about 40% since the presidential election. Over that period, the S&P 500 has declined 2%, while the tech-heavy Nasdaq has dropped 3%.
In July, Trump told the audience at a cryptocurrency conference in Nashville, Tennessee, that he wanted to turn the U.S. into the “crypto capital of the planet.”
Trump promised to weaken federal oversight of cryptocurrency and establish the federal government’s first strategic bitcoin reserve.
In March, Trump signed an executive order establishing the reserve of digital currencies, saying the move would position the U.S. “as a leader among nations in government digital asset strategy.”
On Thursday, Trump is set to attend a gala with hundreds of top investors in his memecoin, which an announcement described as an “intimate private dinner.”
The move elicited concern among some critics as a possible means of exchanging access to the president for financial gain.
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