Silke Mayr Bitcoin soared past $106,000, marking a 50% increase since Donald Trump’s election win on 5 November. The cryptocurrency briefly hit $106,000 before settling at $104,500 in Monday’s Asian trading session.
Trump’s Support Fuels Bitcoin Rally
Trump’s administration is seen as friendlier to cryptocurrencies than Biden’s. On Thursday, Trump announced plans for a U.S. Bitcoin reserve. This move sparked market speculation and boosted investor confidence.
Peter McGuire from XM.com called the rally “parabolic,” driven by FOMO—fear of missing out. “Investors see $120,000 possible this year and $150,000 by mid-2025,” McGuire told the BBC.
Leadership Shifts and Crypto Regulation Changes
Trump appointed David Sacks as his AI and cryptocurrency advisor. Sacks, a former PayPal executive, is a close ally of Trump adviser Elon Musk.
Trump also plans to nominate pro-crypto attorney Paul Atkins as head of the U.S. Securities and Exchange Commission (SEC). Current SEC chair Gary Gensler will step down on 20 January, Trump’s inauguration day.
Trump previously vowed to remove Gensler, citing his legal actions against cryptocurrency firms. Gensler faced backlash from industry leaders for his tough approach. “I thank President Biden for entrusting me with this role,” Gensler wrote on social media platform X, announcing his resignation.
Analysts expect Bitcoin’s rise to continue as Trump’s policies boost investor optimism. Regulatory shifts and key appointments are seen as major price drivers for Bitcoin’s future.