Record Highs and Bullish Momentum
Bitcoin reached a new all-time high on Friday, nearing the $100,000 mark, continuing its strong rally driven by expectations of a more favorable regulatory environment under the potential upcoming Donald Trump administration. The cryptocurrency has more than doubled its value this year, with a 45% increase since Trump’s election victory on November 5. This rally is also bolstered by the election of pro-crypto lawmakers to Congress.
Despite the recent record-breaking surge, Bitcoin slightly pulled back on Friday, trading around $98,500, up 0.5% on the day. However, its momentum remains strong, setting it up for a third consecutive week of over 10% gains and positioning it for its best monthly performance since February.
The “Trump Trades” Phenomenon
Bitcoin’s rise has made it a standout performer in the category of so-called “Trump trades,” referring to assets that are believed to benefit from Trump’s policies. As Bitcoin edges closer to mainstream acceptance, its increasing stability and recognition show the growing seriousness with which investors are treating the digital asset.
“The longer Bitcoin survives, the more it’s taken seriously,” said Shane Oliver, chief economist at AMP Sydney. “While it’s difficult to value, the momentum is undeniable, and right now, it’s clearly on the rise.”
Potential Shift in Regulatory Environment
Bitcoin’s surge is partially attributed to the optimism surrounding a shift in the U.S. regulatory landscape. During his campaign, Trump embraced digital assets, pledging to make the U.S. the “crypto capital of the planet” and even advocating for a national bitcoin stockpile.
With the anticipated departure of Securities and Exchange Commission (SEC) Chair Gary Gensler in January, crypto investors are hopeful for a reduction in the increased scrutiny that has defined recent years. Under Gensler, the SEC filed lawsuits against major cryptocurrency exchanges like Coinbase and Kraken, accusing them of failing to register with the agency—an accusation those exchanges deny and are contesting in court.
Bitcoin Exchange-Traded Funds (ETFs) Fuel Market Growth
A major development in Bitcoin’s growth has been the approval of U.S.-listed Bitcoin exchange-traded funds (ETFs) earlier this year. The SEC had long sought to block these ETFs, citing concerns over investor protection, but their approval has opened the market to a wider range of investors, including institutional ones. Since their approval, more than $4 billion has flowed into U.S.-listed Bitcoin ETFs, further strengthening Bitcoin’s position in the financial market.
Crypto Stocks and Market Activity
While Bitcoin’s price surge slowed on Friday, related stocks such as MicroStrategy, a major Bitcoin holder, saw continued investor interest. MicroStrategy’s stock rose by 2.6% in premarket trading, with $645 million worth of shares traded by 11:25 GMT—far surpassing the volume of other major tech stocks like Nvidia, Tesla, and Apple. This robust trading activity highlights the ongoing enthusiasm surrounding Bitcoin and its growing role in the financial landscape.
