Bitcoin’s meteoric rise toward the $100,000 mark gained momentum on Thursday, with the cryptocurrency hitting a record high of $96,898 during Asian trading hours. Investors are betting big on a more favorable regulatory environment under President-elect Donald Trump, who has promised to turn the U.S. into the “crypto capital of the planet.”
The cryptocurrency has more than doubled in value this year, skyrocketing 40% in just two weeks following Trump’s election victory and the rise of pro-crypto lawmakers in Congress.
“Bitcoin is being drawn irresistibly toward the $100,000 level, though it’s now deeply overbought,” said Tony Sycamore, an analyst at IG Markets.
Trump’s Crypto Pledge Ignites Investor Optimism
Trump’s campaign pledge to embrace digital assets and amass a national bitcoin stockpile has injected new energy into the market. His pro-crypto stance aligns with the election of lawmakers seen as supportive of blockchain innovation, further boosting confidence among investors.
This optimism has led to a $4 billion inflow into U.S.-listed bitcoin exchange-traded funds (ETFs) since the election. BlackRock’s bitcoin ETF options debuted strongly this week, with bullish call options dominating the market.
Crypto Stocks on the Rise
The surge in bitcoin prices has also fueled a rally in crypto-related equities. Shares in mining firm MARA Holdings climbed nearly 14% overnight, while software company MicroStrategy, which holds significant bitcoin reserves, saw a 10% gain, pushing its market capitalization past $100 billion.
“Investors are eyeing regulatory clarity under the new administration, which could be transformative for the crypto sector,” said Will Peck, head of digital assets at WisdomTree, a global ETF provider.
Peck noted that the growing excitement isn’t just limited to bitcoin. “It’s bullish for the entire blockchain ecosystem, which is still in its early stages of growth.”
Eyes on the $100K Milestone
With momentum building, the $100,000 milestone for bitcoin seems increasingly within reach. Market watchers are keenly observing whether the incoming administration’s crypto-friendly policies will usher in a new era for the asset class, transforming the U.S. into a global hub for digital finance.
