Bitcoin hits new record high near $112,000

Bitcoin continued its rally on Thursday, hitting a new record high near $112,000.

The price of the flagship cryptocurrency was last higher by more than 2% at $111,046.88, according to Coin Metrics. Earlier, it rose as high as $111,999.00.

Unlike the rocket rallies to new records long-time bitcoin observers are used to, it’s been a slower-than-usual climb for the cryptocurrency, driven by increasing institutional ownership of the digital asset and corporate adoption of it. Easing trade tensions between the U.S. and China and the Moody’s downgrade of U.S. sovereign debt, which has highlighted alternative stores of value like bitcoin, have been key catalysts.

Bitcoin’s move has been “driven by a mix of positive momentum, growing optimism around U.S. crypto regulation, and continued interest from institutional buyers,” James Butterfill, head of research for crypto-focused asset manager CoinShares, told CNBC by email.

The price rise in world’s largest cryptocurrency is taking place despite a drop in U.S. equities Wednesday, driven by a spike in Treasury yields. Rates jumped again on Thursday, but retreated from their highs.

Bitcoin has typically correlated with equity markets, particularly the tech-heavy Nasdaq. The diverging movements of bitcoin and stocks could be the result of investors looking for alternative stores of value.

Bitcoin is now up more than 19% this year. Bitcoin ETFs have seen strong and steady inflows, with just two days of outflows so far in May, according to SoSoValue. And since the beginning of the year, the number of bitcoin held by public companies has grown 31% to about $349 billion, according to Bitcoin Treasuries. That comprises 15% of the total bitcoin supply.

U.S. President Donald Trump and his artificial intelligence and crypto czar David Sacks have pushed forward a pro-crypto agenda in the U.S., which has helped support the market.

This week, the Senate voted to advance the first crypto legislation, which would create a regulatory framework for stablecoins. Trump has said he wants to see crypto regulation on his desk and ready to sign by August before Congress goes into recess. Also this week, Coinbase joined the S&P 500, which advocates have praised as a watershed moment for the crypto industry.

Adding to upbeat news for crypto, JPMorgan CEO Jamie Dimon, a notable bitcoin skeptic, said that the bank will allow clients to buy the digital currency.