Silke Mayr Bitcoin reached a new all-time high on Friday, approaching $100,000. Optimism about potential regulatory changes under a Donald Trump administration fueled the surge. The cryptocurrency has more than doubled in value this year, climbing about 45% since Trump’s November 5 election win. Pro-crypto lawmakers joining Congress have further bolstered market confidence.
After briefly surpassing $99,000, Bitcoin slightly retreated, trading at around $98,500, up 0.5% for the day. Despite this minor pullback, the cryptocurrency remains on track for its third straight week of over 10% gains. It is also set for its best monthly performance since February.
Bitcoin’s meteoric rise has made it a standout “Trump trade” investment, benefiting from anticipated policy shifts. The cryptocurrency is also nearing mainstream acceptance, 16 years after its creation. “The longer Bitcoin exists, the more legitimacy it gains,” said Shane Oliver, Chief Economist at AMP Sydney. He acknowledged that valuing Bitcoin remains difficult but noted its current momentum is undeniable.
Bitcoin’s 130% gain this year has captured significant attention from investors. Its rapid growth is seen as a sign of increasing demand for digital assets in the current market environment.
Market Impact and Investor Sentiment
Donald Trump’s support for cryptocurrencies has been consistent throughout his campaign. He pledged to make the U.S. a “crypto capital of the world” and proposed a national bitcoin reserve. Investors are hopeful that regulatory scrutiny will ease once SEC Chairman Gary Gensler departs in January. Under Gensler, the SEC sued major crypto exchanges like Coinbase, Kraken, and Binance for allegedly violating registration rules. The companies have denied the charges and are contesting them in court.
The recent approval of bitcoin exchange-traded funds (ETFs) has also fueled Bitcoin’s rally. The SEC’s earlier resistance to such ETFs, citing investor protection concerns, had limited institutional participation. However, since the ETF’s approval, over $4 billion has flowed into U.S.-listed bitcoin ETFs. This development has allowed more institutional investors to enter the market, driving demand for Bitcoin.
Crypto stocks have mirrored Bitcoin’s rise, although they remained stable on Friday as the rally paused. MicroStrategy, known for its significant bitcoin holdings, saw its stock rise 2.6% in premarket trading. By 11:25 GMT, $645 million worth of MicroStrategy shares had been traded, surpassing the volume of major companies like Nvidia, Tesla, and Apple, according to Refinitiv LSEG data.