Bitcoin is on the brink of breaking the historic $100,000 barrier, riding a wave of optimism sparked by President-elect Donald Trump’s pro-crypto stance. The largest cryptocurrency surged by 4.1%, reaching a record $98,342 before settling at $97,775. Since Trump’s victory on November 5, the broader crypto market has gained an astounding $900 billion.
The resurgence is attributed to expectations that Trump’s administration will pivot toward crypto-friendly regulations, replacing the stringent approach of his predecessor. Discussions within Trump’s transition team about creating a White House role dedicated to digital-asset policy have further buoyed sentiment. If established, this would mark the first such position in the US, with industry advocates lobbying for direct access to the president-elect.
Milestone in Sight
Speculators are increasingly confident that Bitcoin will soon cross the $100,000 threshold. Proponents tout this milestone as a symbolic victory over critics who question cryptocurrency’s utility and highlight its association with illicit activities.
“Buyers are strangling the sellers,” said Tony Sycamore, Market Analyst at IG Australia Pty. “While I’m not sure it’s all going to be smooth sailing as it edges closer to the $100,000 mark, the demand appears to be insatiable.”
This optimism follows Trump’s dramatic shift in attitude toward crypto. Once a sceptic, the president-elect embraced the industry after digital-asset firms heavily backed his election campaign. Trump has even launched his own digital-asset initiatives, underscoring his newfound enthusiasm for the sector.
Institutional Momentum
The market’s rally is bolstered by institutional moves such as MicroStrategy Inc.’s plan to accelerate Bitcoin purchases. The company, already the largest publicly traded holder of Bitcoin, announced a nearly 50% increase in its planned sales of convertible senior notes to $2.6 billion, aimed at funding additional token acquisitions.
Bitcoin-focused exchange-traded funds (ETFs) are also seeing unprecedented inflows. Data compiled by Bloomberg reveals that US-based Bitcoin ETFs attracted a net inflow of $5.8 billion since Election Day, pushing their total assets to an all-time high of $100 billion.
Regulatory Promises and Lingering Uncertainty
Trump’s campaign promises include the creation of a strategic Bitcoin reserve and the establishment of a supportive regulatory framework for cryptocurrencies. While the timeline for these initiatives remains unclear, the mere prospect has electrified the market.
However, the current optimism stands in stark contrast to the memories of the 2022 market crash, which exposed widespread fraud and risky practices. Analysts caution that the road ahead may not be without challenges, even as Bitcoin approaches this symbolic milestone.
As crypto enthusiasts watch Bitcoin edge closer to $100,000, the industry is abuzz with anticipation of what Trump’s presidency might mean for the future of digital assets.
