Bitcoin Skyrockets, Eyes Unprecedented $100,000 Milestone

On Friday, Bitcoin reached a new record high, setting its sights on the $100,000 mark, fueled by a rally influenced by the anticipation of a more accommodating regulatory framework under the administration of Donald Trump.

This year, Bitcoin’s value has more than doubled, and it has increased by about 45% since Trump’s decisive election win on November 5. This election cycle also brought a wave of pro-cryptocurrency legislators into Congress.

On Friday, Bitcoin’s rise was somewhat tempered. After hitting a new high above $99,000, Bitcoin saw a slight retreat, ending the day up just 0.5%, at around $98,500.

The momentum for further increases remains strong, with Bitcoin on course for a third consecutive week of double-digit gains. It is also poised to record its best monthly performance since February.

Bitcoin’s surge has positioned it as one of the top beneficiaries of the so-called “Trump trades”—investments that are expected to benefit or suffer from Trump’s policies.

The cryptocurrency is also nearing mainstream acceptance since its inception 16 years ago.

“The longer it survives, the more seriously it is taken, that’s just how it works,” noted Shane Oliver, chief economist and head of investment strategy at AMP Sydney.

“From an economist’s and investor’s perspective, it’s very difficult to place a value on it… it’s really anyone’s guess. However, it certainly has momentum on its side, and currently, that momentum is upward,” Oliver added.

Indeed, Bitcoin has climbed about 130% this year.

During his campaign, Trump showed strong support for digital assets, pledging to turn the United States into the “crypto capital of the world” and to build up a national reserve of Bitcoin.

Crypto investors are expecting a decrease in the intense scrutiny from the U.S. Securities and Exchange Commission (SEC) following the announcement that Chair Gary Gensler would resign in January when Trump assumes office.

Under Gensler’s leadership, the SEC initiated lawsuits against exchanges such as Coinbase, Kraken, Binance, and others, claiming their lack of registration with the agency constituted a breach of SEC regulations, a claim these companies deny and are contesting in court.

Nevertheless, the greenlighting of U.S.-listed Bitcoin exchange-traded funds (ETFs) in January this year provided a significant boost to the market. The SEC had long resisted allowing ETFs to invest in Bitcoin, citing concerns about investor protection. However, these products have enabled a broader spectrum of investors, including institutional ones, to engage with Bitcoin.

Since the election, over $4 billion has flowed into U.S.-listed Bitcoin ETFs.

While U.S.-listed cryptocurrency stocks have seen recent rallies, they stabilized on Friday as the price surge took a breather.

Trading activity remained robust. Software company Microstrategy, which has consistently raised funds to purchase Bitcoin and holds a significant amount of the asset, saw its shares increase by 2.6% in active premarket trading.

By 1125 GMT, about $645 million worth of Microstrategy shares had been traded, surpassing trading volumes of industry giants like Nvidia, Tesla, or Apple, according to data from Refinitiv LSEG.