Bitcoin climbed to an all-time high during early Asian trading on Thursday, briefly topping $124,500 before easing, as favourable US policy moves and a rally in equities lifted sentiment.

The cryptocurrency broke its previous peak set in July, supported by gains on Wall Street, where the S&P 500 and tech-heavy Nasdaq both hit new records this week.

Analysts say regulatory changes under US President Donald Trump, a vocal supporter of the crypto sector have fueled the surge. His administration has moved to scrap restrictions that had prevented banks from doing business with companies deemed reputational risks — a category in which crypto firms were often included.

“The crypto market is enjoying a period of highly favourable fundamentals,” said Samer Hasn, senior market analyst at XS.com. He added that Trump may further accelerate the integration of cryptocurrencies into the national financial system, lifting remaining curbs amid his and his family’s growing involvement in the sector.

Large institutional and individual holders, or “whales”, have also been accumulating bitcoin, further driving demand. Companies, including Trump’s media group and Elon Musk’s Tesla, have been among those making significant purchases.

Bitcoin’s rally comes amid growing speculation that broader adoption and reduced regulatory barriers could propel the cryptocurrency further into mainstream finance.