Bitcoin, the world’s largest cryptocurrency, soared to a new record high of over $105,000 as Asian markets opened on Monday morning. This comes just days after the digital asset crossed the $100,000 milestone for the first time on December 5.
At its peak, Bitcoin climbed more than 3 per cent, reaching an all-time high of $106,493, according to Bloomberg. Other cryptocurrencies, including Ether, XRP, and Dogecoin, also experienced gains, reflecting growing enthusiasm across the digital asset market.
Trump’s role in the Bitcoin rally
Market analysts attribute Bitcoin’s remarkable rally to the policies of President-elect Donald Trump. After defeating Vice President Kamala Harris in last month’s election, Trump is preparing for his second term in office, bringing optimism for a more crypto-friendly regulatory environment.
Reports suggest Trump’s administration plans to reverse the stricter regulations imposed on cryptocurrencies under the outgoing Joe Biden-led government. Bloomberg noted that Trump’s policies could pave the way for a more supportive framework for digital assets, boosting investor confidence.
In a surprising move, Trump is also reportedly considering the creation of a strategic “national Bitcoin stockpile,” although questions remain about the practicality of such an initiative.
Market optimism and inflows
Aya Kantorovich, co-founder of the institutional crypto platform August, said that many investors are optimistic about a “much more favorable” administration under Trump.
“This optimism is clearly reflected in the growing demand for exchange-traded funds (ETFs) focused on cryptocurrencies,” Kantorovich explained.
Since Trump’s election victory, Bitcoin-focused ETFs have seen net inflows of $12.2 billion, while Ether-related products have attracted $2.8 billion over the same period.
What’s next for Bitcoin and Cryptocurrency?
With Bitcoin breaking records and Trump’s policies expected to boost the cryptocurrency market, experts believe digital assets are entering a new era of mainstream adoption. However, much will depend on the feasibility of Trump’s proposed initiatives and their impact on global markets.
Stay updated on Bitcoin, cryptocurrency trends, and Donald Trump’s evolving policies as the digital economy continues to transform.
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