Bitcoin surged beyond $98,000 as investors placed their bets on Trump’s favorable stance towards cryptocurrency. The cryptocurrency reached an all-time high on Thursday, hovering above $98,000 before retracting gains. This uptrend is attributed to investors’ optimism regarding the incoming Trump administration’s crypto-friendly policies. Since the presidential election on Nov. 3, Bitcoin has experienced a significant increase of approximately 40%. 5, achieving numerous milestones as investors target $100,000.
Recent discussions within President-elect Donald Trump’s transition team about the potential for a groundbreaking role in crypto policy have contributed to the token’s recent surge.
Bitcoin has played a significant role in the Trump trade, with promises from Trump to support crypto-friendly initiatives such as the establishment of a national bitcoin reserve and the appointment of a new Securities and Exchange Commissioner in place of Gary Gensler.
CEO of digital asset firm Galaxy Digital (GLXY. TO, BRPHF), Mike Novogratz, stated to Yahoo Finance on Wednesday that whoever Trump selects to lead the SEC would be beneficial for bitcoin due to the favorable stance on cryptocurrencies within the president-elect’s team.
“All the individuals involved are supportive of our sector. They have faith in the realm of digital assets. “They have faith in blockchains and bitcoin, therefore the entire focus of this administration is expected to be vastly different than the Elizabeth Warren, Gary Gensler era,” Novogratz stated.
The surge in bitcoin value this week is also linked to a Financial Times article that mentioned Trump Media & Technology Group (DJT) being in advanced discussions to purchase crypto trading company Bakkt (BKKT), a move that could further stimulate developments in the industry.
In the meantime, bitcoin spot ETFs have experienced significant investments over recent weeks.
According to a report by Yahoo Finance’s David Hollerith, BlackRock’s spot bitcoin ETF (IBIT) witnessed a $13 billion increase in assets following Trump’s election victory, based on data from Yahoo Finance. This propelled assets in the iShares Bitcoin Trust over $40 billion in just 10 months since its inception.
Options linked to IBIT also commenced trading on the Nasdaq on Tuesday, increasing further trading volume in the cryptocurrency sector.