Bitcoin hits new record high, tops $124,000

The cryptocurrency star broke its previous record of $123,205 set on July 14, briefly surpassing $124,500 before falling back. At around 02:08 GMT, Bitcoin was trading at around $123,600.

US stocks closed sharply higher on Wednesday on the New York Stock Exchange, with the S&P 500 index hitting a new high, as did the tech-heavy Nasdaq, contributing to the rise in the cryptocurrency.

Bitcoin has been showing significant growth for several months, encouraged in particular by the favorable legislative climate put in place by American President Donald Trump.

"The cryptocurrency market benefits from very favorable fundamentals," Samer Hasn, market analyst at XS.com, recently recalled.

On the regulatory front, the last major legal battles waged by the US industry regulator are now over.

Additionally, "Donald Trump has taken steps to end restrictions that previously prevented banks from doing business with companies flagged for reputational risks, a category into which cryptocurrency companies were often unfairly placed."

Trump may also be inclined to accelerate the integration of cryptocurrencies into the national financial system and lift additional restrictions, given his and his family's growing involvement in the sector, Hasn added.