Bitcoin revalidates all-time highs amid concerns about the US fiscal deficit

Bitcoin , the most widely used and well-known cryptocurrency on the market, reaffirmed its all-time high near $112,000 on Thursday, amid a weak dollar and concerns about the U.S. fiscal deficit.

Just minutes before 6:00 a.m. Thursday (4:00 a.m. GMT), the cryptocurrency reached $111,878 , but then lost momentum. It is currently up 4% to $111,878. $ 110,827.4 , according to Bloomberg data collected by EFE.

Bitcoin surpassed the record set the day before on Thursday. The latest record was $109,856. The cryptocurrency hadn't traded at its highest level since January 20, the day US President Donald Trump took office.

As market analyst Manuel Pinto explained, the cryptocurrency benefits primarily from the weakness of the dollar and growing concerns about the US fiscal deficit.

He adds that it is also driven by "optimism surrounding stablecoin regulation ( cryptocurrencies pegged to a more stable asset) and a favorable shift in regulatory focus under the Trump administration."

For his part, Simon Peters , an expert crypto-asset analyst at the eToro platform, believes Bitcoin's rise is due to the fact that global liquidity is expected to increase throughout the year.

"The amount of debt that needs to be refinanced" could affect "current demand for newly issued Treasury bonds."

"The recent downgrade of the US credit rating and the amount of debt that needs to be refinanced this year" could affect "the current demand for newly issued Treasury bonds," which would cause the US Federal Reserve ( Fed ) to provide the cash for these bonds and increase its balance sheet, he adds.

"Traditionally, the price of Bitcoin has increased in line with the growth of the Fed's balance sheet ," he says. The cryptocurrency has appreciated by around 18% since the beginning of the year.