Bitcoin hits record as stocks, bonds retreat amid market uncertainty

The price of Bitcoin broke its record on Wednesday, climbing to just shy of $110,000 to eclipse the previous high from January as risk sentiment continues to improve after last month’s tariff-induced sell-off.The flagship cryptocurrency surged to as high as $109,693, or 2.2%, before giving up most of the gains to fall back to around $106,000 in the afternoon following concerns in the broader markets over rising Treasury yields, consumer headwinds and fiscal uncertainty in Washington.Bitcoin’s surge capped a five-week rally fueled by institutional inflows, dollar weakness and optimism around regulatory clarity.The token is up more than 20% over that span.“Price action in Bitcoin looks outright bullish,” Chris Weston, head of research at Pepperstone, told Barron’s on Wednesday.

“If the pullbacks remain limited and well supported, then a new record high could come into play.”In equity markets, the Dow dropped nearly 2% — or more than 700 points as of 2 p.m.ET — as investors digested a volatile mix of earnings, economic data and legislative wrangling.

The Nasdaq and the S&P 500 also were down about 1%.The 30-year yield climbed above 5% again on Wednesday, while the benchmark 10-year rose to 4.54%, extending a global bond rout.Higher yields reflect expectations for more expensive borrowing, which could dampen both economic growth and equity performance.Concerns are mounting over a tax-and-spending package championed by President Trump.The bill — which would extend and expand tax cuts — is forecast to widen budget deficits by about $3 trillion over a decade.Moody’s recently stripped the US of its final triple-A credit rating, exacerbating market worries and contributing to a spike in Treasury yields.As risk sentiment erodes in traditional markets, investors are increasingly turning to Bitcoin as a haven asset.“I am watching the global M2 money supply [the total amount of money circulating in the global economy] and dollar weakness/confiden...