NEW YORK/LONDON, Nov 22 (Reuters) – Bitcoin soared to an all-time high on Friday, with its sights set on the $100,000 mark, driven by expectations of a more favorable regulatory environment under a potential Donald Trump administration.
Trump’s Election Victory Fuels Bitcoin Surge
Since Trump’s sweeping election victory on November 5, where voters also elected numerous pro-crypto lawmakers to Congress, Bitcoin has more than doubled in value this year, with a 45% increase following the election.
However, the cryptocurrency’s gains were more modest on Friday. After reaching a new peak above $99,800, Bitcoin retreated slightly, trading up 1.33% for the day at around $99,383.
Nevertheless, the cryptocurrency appears poised for further gains, set for its third consecutive week of over 10% growth and on track for its best monthly performance since February.
Bitcoin’s Momentum and Mainstream Acceptance
Bitcoin’s remarkable surge has made it one of the standout beneficiaries of so-called “Trump trades” – assets expected to benefit or suffer from the policies of the Republican president.
“The longer it survives, the more seriously it is taken, that’s just the reality of things,” said Shane Oliver, chief economist and head of investment strategy at AMP Sydney. “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.”
Indeed, Bitcoin is up around 130% this year.
Trump’s Crypto-Friendly Stance
During his campaign, Trump embraced digital assets, promising to make the United States the “crypto capital of the planet” and to build a national stockpile of Bitcoin.
Crypto investors anticipate a reduction in scrutiny from the U.S. Securities and Exchange Commission (SEC) after Chair Gary Gensler announced his resignation in January when Trump takes office. Under Gensler, the SEC initiated lawsuits against exchanges like Coinbase, Kraken, and Binance, alleging violations of SEC rules, which the companies deny and are contesting in court.
Despite these challenges, the approval of U.S.-listed Bitcoin exchange-traded funds (ETFs) in January this year has significantly boosted the market. The SEC had long opposed ETFs investing in Bitcoin due to investor protection concerns, but these products have now allowed more investors, including institutional ones, to gain exposure to the cryptocurrency.
Since the election, more than $4 billion has flowed into U.S.-listed Bitcoin ETFs.
Market Reactions
While U.S.-listed crypto stocks rallied in recent days, they remained stable on Friday as the price surge paused. However, trading continued unabated, with software firm MicroStrategy, a major Bitcoin holder, closing 6.2% higher on Friday.
