Bitcoin soared to a fresh record high on Friday, with the cryptocurrency’s sights firmly set on the $100,000 milestone. This surge has been fueled by growing expectations that the regulatory environment under a Donald Trump administration will be favorable to digital currencies.
Impressive Year-to-Date Growth
Bitcoin has more than doubled in value in 2024 and is up roughly 45% since Trump’s sweeping victory in the presidential election on November 5. His win has been accompanied by the election of several pro-crypto lawmakers to Congress, further boosting optimism for the cryptocurrency.
Slight Pullback After Record High
On Friday, Bitcoin briefly surpassed $99,000 before pulling back slightly. The cryptocurrency traded around $98,500, reflecting a modest 0.5% daily gain. Despite the dip, the momentum for further price increases remains strong. Bitcoin is poised for its third consecutive week of gains exceeding 10%, and it’s on track for its best monthly performance since February.
Bitcoin as a Key Player in “Trump Trades”
Bitcoin has emerged as one of the standout performers in what are known as “Trump trades”—assets that are expected to benefit or suffer based on Trump’s policies. The cryptocurrency’s impressive rally reflects the growing optimism around its future prospects.
Growing Mainstream Acceptance
Bitcoin, created 16 years ago, appears to be on the verge of achieving mainstream acceptance. Shane Oliver, Chief Economist and Head of Investment Strategy at AMP Sydney, notes that the longer Bitcoin survives, the more seriously it is taken in the financial world. While difficult to value accurately, Oliver acknowledges that Bitcoin has a strong momentum that continues to drive its price upward.
Trump’s Support for Digital Assets
During his presidential campaign, Trump expressed strong support for digital assets, promising to make the United States the “crypto capital of the planet” and even suggesting the accumulation of a national stockpile of Bitcoin. Since the election, over $4 billion has poured into U.S.-listed Bitcoin exchange-traded funds (ETFs), further boosting Bitcoin’s market strength.
