Bitcoin surged to a new all-time high on Friday, nearing the $100,000 threshold. Optimism surrounding a favorable regulatory climate under a potential Donald Trump administration drove the surge. The cryptocurrency’s value has more than doubled this year. Since Trump’s election victory on November 5, bitcoin’s price has climbed 45%, fueled by the election of pro-crypto lawmakers in Congress.
On Friday, bitcoin briefly surpassed $99,000 before pulling back slightly. It traded up 0.5%, settling around $98,500. The momentum for further gains remains strong. Bitcoin is set to log its third consecutive week of over 10% gains, marking its best monthly performance since February.
Bitcoin’s Role in “Trump Trades” and Growing Mainstream Acceptance
Bitcoin’s rally highlights its role as a prominent “Trump trade.” Investments perceived to benefit from Trump’s policies have gained attention. Bitcoin is now on the brink of mainstream acceptance, more than 16 years after its inception.
“The longer it survives, the more it’s taken seriously,” said Shane Oliver, Chief Economist and Head of Investment Strategy at AMP Sydney. “As an economist and investor, I find it difficult to value it… it’s anyone’s guess. But right now, it has strong momentum.”
Bitcoin’s 2023 performance has been extraordinary, with a year-to-date surge of around 130%.
Trump’s Pro-Crypto Stance and Regulatory Shifts
During his presidential campaign, Trump pledged to make the U.S. the “crypto capital of the planet.” He also supported creating a national bitcoin reserve. Crypto investors anticipate reduced scrutiny from the U.S. Securities and Exchange Commission (SEC) after SEC Chair Gary Gensler’s planned departure in January.
Under Gensler’s leadership, the SEC pursued lawsuits against Coinbase, Kraken, and Binance, accusing them of failing to register with the agency. These exchanges denied the allegations and are fighting the charges in court.
The approval of U.S.-listed bitcoin exchange-traded funds (ETFs) in January further boosted market sentiment. The SEC’s previous resistance to ETFs stemmed from concerns about investor protection. However, the recent approval allowed more institutional investors to access bitcoin. Since Trump’s election win, over $4 billion has been invested in U.S.-listed bitcoin ETFs.
U.S.-listed crypto stocks showed signs of stabilization on Friday. Trading activity remained strong, with MicroStrategy’s stock rising 2.6% in premarket trading. By 11:25 GMT, $645 million worth of MicroStrategy shares had been traded, surpassing the trading volumes of Nvidia, Tesla, and Apple, according to Refinitiv LSEG data.