AFP, Tokyo

Bitcoin hit a record high on Thursday during early Asian trading, surpassing $124,000, driven by favourable US legislation and a rise in US equities.

The cryptocurrency rose above its previous July record, briefly exceeding $124,500 before retreating.

US stocks ended higher Wednesday, with the S&P 500 index and the tech-heavy Nasdaq reaching new heights this week, contributing to the cryptocurrency’s rise.

Bitcoin’s value has recently soared, fuelled by US regulatory changes under US President Donald Trump, a strong backer of the crypto sector.

Its price has also been boosted by large holders of cryptocurrency, referred to as “whales”.

“The crypto market is enjoying a period of highly favorable fundamentals,” said Samer Hasn, senior market analyst at XS.com. “President Donald Trump has moved to end restrictions that previously prevented banks from doing business with companies flagged for reputational risk concerns, a category in which crypto firms were often unfairly placed,” he added.

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 said.

Trump’s media group and Tesla, the electric carmaker owned by tech billionaire Elon Musk, are among an increasing number of companies buying huge amounts of bitcoin.