Bitcoin climbs closer to $100,000, driven by optimism over President-elect Donald Trump’s supportive stance on cryptocurrency. The largest digital asset climbed to $97,892 before slightly retreating. Market enthusiasm has grown since Trump’s election victory on November 5, with the crypto sector adding nearly $900 billion in value.
Trump’s transition team is reportedly considering creating a White House position focused on digital asset policy. This role, a first for the U.S., would directly liaise with the president-elect. Industry leaders are lobbying for this position as part of efforts to establish a crypto-friendly regulatory framework.
MicroStrategy, the largest corporate Bitcoin holder, announced plans to increase its convertible senior notes sale to $2.6 billion to fund additional Bitcoin purchases. The company, now positioning itself as a Bitcoin treasury, holds approximately $31 billion worth of the cryptocurrency.
U.S.-based Bitcoin exchange-traded funds (ETFs) have seen $5.8 billion in net inflows since Election Day. This marks a milestone as the total assets under management for these funds have reached $100 billion. The surge reflects heightened institutional interest and confidence in Bitcoin’s long-term value.
Speculation Around $100,000
The cryptocurrency market is experiencing a surge as Bitcoin climbs closer to $100,000, breaking new price records. The $100,000 price level is seen as a psychological benchmark for Bitcoin. Market analysts believe strong demand is driving the price upward, despite potential volatility. Tony Sycamore, an analyst at IG Australia, noted the intense competition between buyers and sellers as the price approaches this milestone.
There is growing speculation about a U.S. strategic Bitcoin reserve. Senator Cynthia Lummis had earlier proposed a bill advocating for a reserve to mitigate the national debt. Trump’s advisors are exploring this idea, raising expectations for policy changes that could benefit the crypto market.
Trump’s Pro-Crypto Cabinet Appointments
Trump’s cabinet picks include pro-Bitcoin figures, such as Howard Lutnick, CEO of Cantor Fitzgerald, who has significant Bitcoin exposure. Lutnick has expressed confidence in Bitcoin’s long-term value, likening it to gold and oil.
The optimism comes after a challenging period in 2022, marked by market crashes and regulatory scrutiny. Firms like FTX faced collapse, leading to stringent enforcement by the SEC. However, Trump’s presidency is expected to pivot toward a more supportive regulatory environment, bolstering market confidence.
The crypto market remains on edge, watching for further developments as Bitcoin edges closer to breaking the $100,000 barrier. Speculators view this milestone as a turning point, reinforcing Bitcoin’s status as a valuable asset in the global economy.
Push Toward $100,000 Level
Trump’s proposed Bitcoin stockpile plan gains attention while Bitcoin climbs closer to $100,000. Tony Sycamore, an analyst at IG Markets, noted that while the cryptocurrency appears overbought, it remains firmly on an upward trajectory.
Trump has voiced strong support for digital assets, promising to establish the U.S. as the “crypto capital of the planet.” His campaign also included plans to create a national Bitcoin reserve, further fueling market excitement.
Bitcoin exchange-traded funds (ETFs) listed in the U.S. have seen inflows exceeding $4 billion since the election. BlackRock’s ETF recently launched options trading, with call options—bets on price increases—outpacing puts. The strong demand highlights growing investor confidence in Bitcoin.
Crypto Stocks on the Rise
Shares of crypto-related companies have mirrored Bitcoin’s price surge. Bitcoin miner MARA Holdings saw a 14% rise, while MicroStrategy’s stock jumped 10%, pushing its market capitalization beyond $100 billion. The company has made substantial Bitcoin purchases despite being a loss-making software firm.
The crypto community is closely watching for potential regulatory reforms under Trump’s administration. Will Peck, head of digital assets at WisdomTree, noted the uncertainty but expressed optimism for the broader blockchain ecosystem. Peck described the current enthusiasm as a bullish signal for crypto and blockchain technologies.
Also Read: Bitcoin ETF Options Go Live in Busy Trading, Marking a Historic Debut.
