Bitcoin is on the brink of hitting the $100,000 mark, fuelled by President-elect Donald Trump’s pro-crypto stance and expectations of regulatory reforms that favour digital assets. The cryptocurrency surged as high as $98,342 on Thursday, a 4.1% increase, before settling at $97,775 by midday in London. The broader crypto market has gained approximately $900 billion in value since Trump’s November 5 election victory.
Trump’s transition team is reportedly considering establishing a White House position dedicated to digital-asset policy. This would mark the first time such a role has been created in the United States, and the industry is lobbying for direct access to the president-elect, who has emerged as a key supporter of cryptocurrency.
Market Momentum
The industry’s optimism has been bolstered by other positive developments, including MicroStrategy Inc.’s plans to expand Bitcoin acquisitions and the introduction of options for Bitcoin exchange-traded funds in the US.
Speculators are increasingly focused on when Bitcoin will surpass the $100,000 milestone. Advocates see this as a symbolic rebuttal to critics who question the asset’s utility and link it to illicit activities.
“Buyers are squeezing out sellers,” said Tony Sycamore, Market Analyst at IG Australia Pty. “Reaching $100,000 may not come without challenges, but demand is undeniably strong.”
MicroStrategy, the largest corporate holder of Bitcoin, has increased its planned convertible note sale to $2.6 billion to fund further purchases. The company, once a niche software firm, now positions itself as a Bitcoin treasury, holding approximately $31 billion worth of the digital asset.
ETF Inflows and Psychological Barriers
US Bitcoin ETFs have attracted $5.8 billion in net inflows since Election Day, pushing total assets under management to an unprecedented $100 billion. Caroline Mauron, co-founder of Orbit Markets, highlighted $100,000 as a significant psychological level, adding that rising activity in Bitcoin options points to heightened market volatility.
Trump’s promises include creating a favourable regulatory framework and exploring a strategic Bitcoin reserve. However, the timeline and feasibility of these plans remain unclear. His shift from scepticism towards crypto was reportedly influenced by substantial lobbying efforts during his campaign.
The current optimism contrasts sharply with the 2022 crypto market crash, which exposed fraudulent practices and led to the collapse of platforms like FTX. Industry insiders believe the SEC’s aggressive enforcement actions from that period will ease under Trump’s administration.
Credit: Yahoofinance (Text Excluding Headline)
