Bitcoin has surged to a new record high, continuing a remarkable rally that has seen the price of the world’s largest cryptocurrency climb by over 50% since Donald Trump’s victory in the US presidential election on November 5.
On Monday morning, Bitcoin briefly passed the $106,000 mark, before slightly retreating to around $105,000 during Asia trading hours. The surge has drawn significant attention as the cryptocurrency market responds to the incoming Trump administration’s policies, which are seen as more favorable towards digital currencies than those of the Biden White House.
Trump’s Crypto-Friendly Policies Fueling the Rally
The recent price spike coincides with comments from President-elect Trump, who on Thursday indicated he is considering creating a national stockpile of Bitcoin, similar to the US’s strategic oil reserve. This move is viewed by many as a signal of stronger government support for cryptocurrency, further boosting investor confidence.
Peter McGuire, a market analyst at XM.com, described the rally as “parabolic,” with the “FOMO” (fear of missing out) effect driving more investors into the market. “Many investors believe $120,000 is achievable by the end of the year, and by mid-2025, there are discussions about the possibility of Bitcoin surpassing $150,000,” McGuire told the BBC.
Key Appointments Signal Pro-Crypto Stance
Trump’s cryptocurrency-friendly policies are further underscored by his recent appointments. Earlier this month, the president-elect named Silicon Valley entrepreneur David Sacks as his “artificial intelligence and cryptocurrency tsar.” Sacks, a former PayPal executive and close associate of Elon Musk, is expected to play a central role in shaping the administration’s stance on digital currencies.
In addition, Trump has pledged to nominate Paul Atkins, a pro-cryptocurrency attorney, as the next chair of the Securities and Exchange Commission (SEC). This comes after current SEC chairman Gary Gensler announced he would step down on January 20, the day of Trump’s inauguration. Gensler had been a controversial figure in the cryptocurrency space, having taken legal action against multiple cryptocurrency firms.
Trump had previously signaled his intention to replace Gensler early in his administration, criticizing the SEC’s approach to regulating the cryptocurrency sector.
Outlook for Bitcoin
As Bitcoin continues to break records, analysts remain optimistic about its future. The strong rally, fueled by investor optimism and expectations of supportive policies under the new administration, suggests that further gains may be on the horizon.
However, the cryptocurrency’s volatile nature means that the path forward remains uncertain, with market watchers closely monitoring developments in the US government’s regulatory approach and broader economic trends.
