Bitcoin hits record high, boosted by uncertainty over Trump's policies

Bitcoin surged to a record high as investors sought to hedge against global uncertainty tied to U.S. President Donald Trump’s policies and as they speculated the U.S. government would ease regulation of the digital virtual currency.

Data compiled by Bloomberg showed that at 5 p.m. New York time, Bitcoin closed up 3.1% at $1,164.10, surpassing the closing high of $1,137 set in November 2013.

Bitcoin has been volatile in recent weeks, falling to a low of $789 on Jan. 11 when China tightened controls on bitcoin trading platforms in the country. China accounts for a large portion of bitcoin trading as Chinese investors seek ways to circumvent capital controls. Bitcoin has stayed above $1,000 for an unprecedented length of time, according to research firm CoinDesk.

The latest rally may have nothing to do with China but rather global political uncertainty caused by President Trump’s statements and policies, Mark Bunger, an analyst at Lux Research Inc., said in an interview. He also said some investors may be pushing up Bitcoin in the hope that the U.S. government will relax financial industry regulations, which may make it easier to use Bitcoin and create related businesses.

“This is all about Trump and the ripple effects of Trump,” Bunger said.

There’s another factor: The Winklevoss Bitcoin Trust is likely to learn in the coming weeks whether its exchange-traded fund has been approved, which could potentially attract more investors to bitcoin if it is allowed to move forward.