Bitcoin hit a new all-time high on Friday, approaching the $100,000 mark. This rally stems from optimism about a cryptocurrency-friendly regulatory environment under a potential Donald Trump presidency.
The cryptocurrency has more than doubled in value this year. Since Trump’s election victory on November 5, Bitcoin has surged about 45%, bolstered by the election of pro-crypto lawmakers to Congress.
Market Momentum and Regulatory Shifts
Bitcoin’s momentum briefly slowed on Friday after surpassing $99,000. It pulled back slightly, trading at around $98,500, up 0.5% for the day. Despite this minor dip, Bitcoin is poised for its third straight week of gains over 10% and its best monthly performance since February.
This explosive growth cements Bitcoin as a key player in the “Trump trades,” investments tied to potential Trump administration policies. The surge reflects growing mainstream acceptance of Bitcoin, 16 years after its inception.
“The longer it survives, the more seriously it’s taken,” said Shane Oliver, Chief Economist at AMP Sydney. “Valuing it is challenging, but its upward momentum is undeniable.” Bitcoin has gained approximately 130% this year.
Trump’s campaign emphasized strong support for digital assets. He pledged to make the U.S. the “crypto capital of the planet” and create a national bitcoin reserve. Investors also expect reduced scrutiny from the SEC after Chair Gary Gensler announced his resignation effective in January, aligning with Trump’s inauguration. Under Gensler, the SEC targeted exchanges like Coinbase, Kraken, and Binance for not registering with the agency. These companies deny the charges and are contesting them in court.
ETFs and Institutional Investment Drive Growth
The approval of U.S.-listed bitcoin exchange-traded funds (ETFs) in January significantly boosted the market. The SEC previously opposed such funds, citing investor protection concerns. However, the recent approval opened doors for more investors, including institutional ones. Since the election, over $4 billion has flowed into U.S.-listed bitcoin ETFs.
Although U.S.-listed crypto stocks paused their rally on Friday, trading activity stayed strong. MicroStrategy, a major bitcoin holder, saw its stock rise 2.6% in premarket trading. By 11:25 GMT, $645 million worth of MicroStrategy shares had been traded. This trading volume outpaced major companies like Nvidia, Tesla, and Apple, according to Refinitiv LSEG data.
