Bitcoin hit a new all-time high on Wednesday, breaking its previous record set in January.

The leading cryptocurrency climbed as high as $109,500 before easing to $108,955.10, up 2%, according to Coin Metrics.

The surge highlights continued investor interest and confidence in the digital asset market.

“Bitcoin’s new high has been concocted by an array of favorable ingredients in the macro cauldron, namely softer U.S. inflation numbers, a de-escalation in the U.S.-China trade war and the Moody’s downgrade of U.S. sovereign debt, which has put the spotlight on alternative stores of value like bitcoin,” said Antoni Trenchev, cofounder of crypto exchange Nexo.

Bitcoin’s price has climbed 16% so far in May, continuing a steady upward trend. Last week, cumulative inflows into bitcoin-tracking ETFs topped $40 billion, with only two days of outflows recorded this month.

On-chain data from CryptoQuant points to reduced selling pressure, with fewer bitcoin inflows into exchanges. Market liquidity is also improving, as shown by record levels of the Tether stablecoin (USDT) held on exchanges—a key indicator of available capital in the crypto market.

Investors are anticipating key catalysts—such as regulatory developments and corporate treasury investments—to push bitcoin prices higher, according to Steven Lubka, head of private clients and family offices at Swan Bitcoin.

Since the start of the year, the amount of bitcoin held by public companies has increased by 31%, data from Bitcoin Treasuries shows.

President Donald Trump has stated that he wants comprehensive crypto regulation ready for his signature by August, ahead of Congress’s summer recess.

Meanwhile, Coinbase joined the S&P 500 this month—a move widely seen on Wall Street as a major milestone for the crypto industry, signaling growing mainstream acceptance.