Key Points
- Bitcoin’s value has soared past $97,200, driven by Donald Trump’s crypto-friendly agenda.
- Trump’s pro-crypto stance has increased investor optimism, leading to a surge in Bitcoin’s price and the cryptocurrency sector.
Bitcoin’s value has risen above $97,200 for the first time during Asian trading on Thursday. The historic increase is attributed to investor optimism about regulatory reforms under President-elect Donald Trump.
The rise brings Bitcoin closer to the $100,000 mark, indicating growing confidence in its potential under the incoming administration. Over the past year, Bitcoin’s value has more than doubled, with a sharp 40% jump in just two weeks following Trump’s victory.
Increased Momentum in the Cryptocurrency Sector
The entry of pro-crypto lawmakers into Congress has added to the momentum, suggesting stronger legislative backing for the cryptocurrency sector. Investors are increasingly anticipating policies aimed at fostering growth in digital assets. “While it’s now firmly into overbought territory, it is being drawn toward the $100K level,” noted Tony Sycamore, an analyst at IG Markets. His comments highlight the technical and market forces driving Bitcoin’s ascent as traders maintain a bullish outlook on its future trajectory.
During his campaign, Trump championed digital currencies, promising to make the United States the “crypto capital of the planet”. He proposed building a national Bitcoin reserve, signaling a strong intention to integrate cryptocurrencies into the country’s financial framework. Investors responded enthusiastically, channeling significant funds into US-listed Bitcoin exchange-traded funds (ETFs).
Heightened Interest from Institutional Players
Since the election, over $4 billion has flowed into ETFs, revealing heightened interest from institutional players. This week saw the launch of options for BlackRock’s iShares Bitcoin Trust (IBIT). Call options, reflecting bets on rising prices, have exceeded puts, underscoring optimism about Bitcoin’s upward momentum.
Bitcoin-related stocks have followed the cryptocurrency’s upward trend. Shares of MARA Holdings, a prominent Bitcoin miner, surged nearly 14% overnight. Meanwhile, MicroStrategy, a software firm with extensive Bitcoin holdings, saw its stock jump 10%, lifting its market value above $100 billion. These movements underscore growing confidence in Bitcoin’s sustained growth trajectory.
Will Peck, head of digital assets at WisdomTree, highlighted growing curiosity about whether the current administration might deliver long-awaited regulatory clarity for the crypto sector. He expressed a mix of optimism and caution, pointing to potential progress in regulatory matters while emphasizing the uncertainty of achieving concrete results.
“With the approval of options on Bitcoin ETFs, we’re not just seeing the maturation of the crypto ETF market — we’re watching Bitcoin cement its place alongside stocks, bonds, and commodities as a mainstream institutional investment,” said Nathan McCauley, CEO and Co-Founder of Anchorage Digital.
The recent surge in Bitcoin’s price can be traced back to November 5, when Trump won the presidential election against Vice President Kamala Harris. The administration’s team is reportedly considering creating a dedicated crypto policy position, a first for the White House, which could signal a more structured and supportive approach to cryptocurrency regulation.
