On Tuesday, Bitcoin was on the brink of reaching $90,000, buoyed by a surge of optimism following Donald Trump's election as U.S. president. Many investors anticipate that his administration will embrace a more favorable stance toward cryptocurrencies.
In the week since the election, Bitcoin has emerged as one of the most notable performers, peaking at $89,637 during trading in Asia—an impressive increase of over 25% since November 5. As reported by Coin Metrics, the cryptocurrency was recently trading at $89,100, reflecting a 12% rise. Earlier that day, it had climbed to $89,623. At around 9:25 a.m. in Singapore, the flagship cryptocurrency was trading at $89,165.
Analysts believe that Bitcoin is entering a phase of price discovery, having surpassed its previous all-time highs shortly after the election results were announced. Mike Colonnese, an analyst at H.C. Wainwright, noted, “Positive sentiment is likely to continue through the remainder of 2024, and we anticipate that Bitcoin prices could reach six figures by the end of this year.”
This record-setting rally has propelled Bitcoin past the $89,000 mark and increased the overall market value of cryptocurrencies beyond its peak during the pandemic, as traders speculate on a bullish trend under the incoming administration.
Trump has committed to implementing more crypto-friendly regulations, and his Republican Party is consolidating its power in Congress to advance his agenda. Among his promises are the establishment of a strategic Bitcoin reserve and the promotion of domestic mining operations. Crypto investors are encouraged by Trump’s assurances to foster a more supportive regulatory environment, addressing the longstanding ambiguity that has plagued the industry.
While Bitcoin has traditionally been regarded as a safe asset in Washington—exempt from securities regulations—the broader landscape of cryptocurrencies and related startups has often operated in a precarious grey area.
Matt Hougan, chief investment officer of Bitwise Asset Management, remarked, “The environment has shifted dramatically. We now find ourselves in a positive regulatory landscape, which provides tailwinds for a market already in a bull phase. This will likely lead to further price increases.”
Zainab Y.
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