Bitcoin has once again captured global attention, surging towards record highs as the United States signals a deeper embrace of cryptocurrency under President-elect Donald Trump. A series of pivotal developments, including Trump Media & Technology Group Corp’s reported interest in acquiring Bakkt Holdings Inc., have invigorated the digital asset market, reinforcing optimism about the future of crypto in America.
The announcement of potential talks between Trump Media and Bakkt Holdings sent shockwaves through the financial world, driving up the shares of both companies. Nasdaq Inc.’s plan to list options on the US$43 billion iShares Bitcoin Trust and Goldman Sachs Group Inc.’s push to spin off its digital-asset platform further reflect the growing institutional acceptance of cryptocurrency and blockchain technology.
On Monday, Bitcoin soared to an intraday high of US$92,606 in the United States before settling at US$90,565 in early trading yesterday in Singapore, just shy of its all-time high. The leading cryptocurrency has surged 35% since Trump’s election victory on November 5, a win underpinned by promises to position the US as the global hub for crypto innovation.
“The crypto scene is on the move once again,” noted Chris Weston, head of research at Pepperstone Group, in a market update. He highlighted that Trump Media’s interest in Bakkt is “another piece of positive news that is lifting sentiment.”
Trump has pledged to establish a supportive regulatory framework for digital assets, including the creation of a strategic Bitcoin reserve. However, the timeline and feasibility of these plans remain uncertain, adding an element of unpredictability to the market’s trajectory.
Investors remain optimistic, with open interest in Bitcoin options markets concentrated on bullish bets for the cryptocurrency to breach US$100,000, according to data from the Deribit exchange. Technical analysis by Katie Stockton of Fairlead Strategies LLC suggests potential gains in the coming weeks, with Bitcoin potentially targeting US$98,100. Meanwhile, Tony Sycamore, a market analyst at IG Australia Pty, expressed interest in buying on corrections near US$80,000.
The iShares Bitcoin Trust, managed by BlackRock Inc., continues to attract significant attention as the largest Bitcoin-focused investment vehicle. The addition of options on the trust is expected to expand trading opportunities and draw fresh investment into the ecosystem. Net inflows into US spot Bitcoin exchange-traded funds, including the iShares product, have surpassed US$4 billion since the US election.
While optimism reigns, the industry remains mindful of its tumultuous history. The crypto market suffered a severe downturn in 2022, marked by fraud scandals and the collapse of platforms such as FTX. On Monday, a federal court sentenced Heather Morgan, infamously known as the “Crocodile of Wall Street,” to 18 months in prison for her role in laundering stolen Bitcoin valued at billions of dollars.
Trump’s shift from a crypto skeptic to a proponent aligns with significant campaign contributions from digital asset firms. This newfound support has fueled hopes for comprehensive crypto legislation in 2025, with Bloomberg Intelligence’s Nathan Dean estimating a 70% chance of such a bill passing.
As Bitcoin’s momentum builds, all eyes remain on the unfolding regulatory and market developments that could define the next chapter in the cryptocurrency revolution.
