Bitcoin reaches new all-time high, on track for $100,000 target
Bitcoin reached a new record high on Friday and is now aiming for the $100,000 mark. This surge is part of a strong rally for the cryptocurrency, driven by hopes of favorable regulations under a Donald Trump administration. Since Trump’s election victory on Nov 5, Bitcoin’s value has more than doubled, rising by about 45%. Additionally, many pro-crypto lawmakers have been elected to Congress during this period.
Although Bitcoin’s gains were more modest on Friday, with a slight pullback after hitting over $99,000, it is still up by 0.5% to trade around $98,500. The momentum for further gains remains strong, with Bitcoin set for a third consecutive week of over 10% gains and its best monthly performance since February.
The cryptocurrency has emerged as a standout winner among assets affected by Trump’s policies, known as “Trump trades.” Bitcoin’s acceptance has grown significantly over the past 16 years since its creation, with mainstream acknowledgment seemingly on the horizon.
Shane Oliver, chief economist at AMP Sydney, acknowledges the growing credibility of Bitcoin, “The longer it survives it is taken more seriously, that’s just the reality of things. As an economist and investor I find it very hard to value it… it’s anyone’s guess. But it does have a momentum aspect to it and at the moment the momentum is up.” This year alone, Bitcoin has surged by around 130%.
During his campaign, Trump expressed support for digital assets, aiming to position the United States as the “crypto capital of the planet” and build a national stockpile of Bitcoin. Since the election, over $4 billion has flowed into US-listed Bitcoin exchange-traded funds.
Overall, Bitcoin’s rally is driven by a combination of positive sentiment regarding regulatory environment, increasing mainstream acceptance, and high-profile endorsements like Trump’s support. These factors have contributed to the cryptocurrency’s impressive performance this year.
