Bitcoin nears US$100,000 as Trump boosts investor confidence

Bitcoin‘s rapid ascent towards the US$100,000 mark gained momentum today, driven by investor optimism about a potential supportive stance from the incoming US administration under President-elect Donald Trump. Traders in Asia saw bitcoin prices surpass US$96,000 for the first time, reaching a peak just above US$96,898.

This year has witnessed a dramatic surge in bitcoin’s value, with its price more than doubling. In the fortnight following Trump’s election victory, the cryptocurrency has risen approximately 40%, suggesting confidence in the anticipated regulatory environment, said IG Markets analyst Tony Sycamore.

“While it’s now firmly into overbought territory, it is being drawn toward the US$100k level.”

Trump, during his campaign, expressed a favourable view of digital currencies, vowing to transform the United States into the crypto capital of the planet and to amass a national reserve of bitcoin.

Since the election, over US$4 billion has flowed into US-listed bitcoin exchange-traded funds. This week saw a robust performance for options on BlackRock’s ETF, with call options, indicating bets on price increases, outnumbering puts.

The surge in bitcoin’s value has also lifted crypto-related stocks. Bitcoin miner MARA Holdings experienced a near 14% rise overnight, while MicroStrategy, a software company known for its significant bitcoin holdings, saw its shares climb 10%, pushing its market capitalisation beyond US$100 billion, reported Bangkok Post.

Will Peck, head of digital assets at WisdomTree, a global exchange-traded fund issuer, urged caution.

“Many are wondering if this administration will bring the regulatory clarity the crypto community has been waiting for. It’s likely too soon to say.

“We see all of this excitement as bullish not only for bitcoin or crypto broadly but the entire blockchain-enabled ecosystem that is growing today.”

In related news, Bitcoin is poised for a potential surge to a new record high, driven by expectations of further US policy rate cuts and a potential victory by Donald Trump in the US presidential election, according to insights from Merkle Capital, a digital asset fund manager.