Bitcoin reached a new all-time high on Friday, nearing the $100,000 mark. This surge was driven by optimism about a more crypto-friendly regulatory environment under a Donald Trump administration. The cryptocurrency has doubled in value this year and risen 45% since Trump’s election victory on November 5, which also brought pro-crypto lawmakers to Congress.
After briefly crossing $99,000, Bitcoin dipped slightly but remained strong at around $98,500, up 0.5% for the day. Despite the minor setback, Bitcoin is on track for its third consecutive week of over 10% gains. This month could be its best performance since February.
Bitcoin’s Growth and Mainstream Adoption
Bitcoin’s rapid rise makes it a key player in “Trump trades,” investments expected to benefit from the president’s policies. Sixteen years after its creation, Bitcoin appears closer to mainstream acceptance.
“The longer Bitcoin survives, the more seriously it’s being taken,” said Shane Oliver, Chief Economist at AMP Sydney. He noted that while valuing Bitcoin is complex, its current momentum is undeniable. So far in 2023, Bitcoin has climbed approximately 130%.
Trump has pledged to support digital assets, calling for a national Bitcoin stockpile and promising to make the U.S. the “crypto capital of the planet.” Crypto investors anticipate less SEC scrutiny after news that Chairman Gary Gensler will step down in January as Trump takes office.
Under Gensler, the SEC sued major crypto exchanges, including Coinbase, Kraken, and Binance, for not registering with the agency. These companies have denied the allegations and are defending themselves in court.
ETF Approvals and Market Momentum
The approval of U.S.-listed Bitcoin exchange-traded funds (ETFs) in January has further fueled Bitcoin’s growth. After years of resistance from the SEC, these ETFs have made it easier for institutional investors to access Bitcoin. Since the election, over $4 billion has been invested in these ETFs.
On Friday, U.S.-listed crypto stocks remained steady as Bitcoin’s price rally paused. MicroStrategy, a software company heavily invested in Bitcoin, saw its stock rise 2.6% in premarket trading. By 11:25 GMT, $645 million worth of MicroStrategy shares had traded, surpassing companies like Nvidia, Tesla, and Apple in trading volume, according to Refinitiv LSEG data.
