The cryptocurrency Bitcoin has risen to historic peak levels in recent days and is now trading at nearly $118,000. Increased interest from institutional investors and Donald Trump’s crypto-friendly policies are cited as driving factors behind the sharp rise.

The leading cryptocurrency Bitcoin continues its impressive development and reached a new peak of $118,780 on Thursday. By Friday morning, the currency was trading at $117,688, representing an increase of approximately 26 percent since the beginning of the year.

The upswing has been particularly pronounced recently. On a weekly basis, Bitcoin has risen around eight percent, while Thursday’s trading alone contributed a six percent increase.

Institutions take their place in the crypto market

Behind the recent sharp price increase lie several interacting factors. Many market analysts highlight President Donald Trump’s positive attitude toward cryptocurrencies as an important catalyst, not least his stated ambition to establish a strategic crypto reserve for the United States.

But perhaps the most significant development is institutional investors’ growing engagement in the crypto sector. Major financial players have increasingly begun including Bitcoin and other digital assets in their portfolios over the past year, which has helped legitimize the market.

— Bitcoin’s new record level is driven by relentless institutional accumulation. Major players are increasing supply and reducing liquidity on exchanges, says Joshua Chu, co-chairman of the Hong Kong Web3 Association, to news agency Reuters.

Next target: $150,000

The question many market participants are now asking is how far Bitcoin’s price increase can continue. According to crypto experts that consulting firm Fast Company has spoken with, the $120,000 level could constitute an important psychological barrier for the currency.

If Bitcoin succeeds in establishing itself above this level, it could, according to analysts, open up for further price increases, potentially up to $150,000 per unit.

At the same time, market experts remind that Bitcoin has historically undergone both sharp rises and deep falls. According to analysis company Tradingview, there are signs suggesting that a correction may be on the way, which could push the price below $107,000. Such a movement would, however, according to the same analysis, be technically driven and expected to be followed by further upswings.

The second-largest cryptocurrency Ether has also shown strength and is currently trading around $2,957, after previously moving up toward $2,998 – the highest level in five months.