Bitcoin has surged to an all-time high, briefly surpassing $106,000 before retreating slightly to around $105,000 during Monday’s trading session in Asia.
This marks a notable milestone in a rally that has seen the cryptocurrency’s price rise more than 50% since the US presidential election on November 5, 2024.
The rally is largely attributed to the incoming Trump administration’s favorable stance toward cryptocurrencies. President-elect Donald Trump has repeatedly signaled his support for digital assets, with a proposal to create a national Bitcoin reserve similar to the US strategic oil reserve. Trump’s plan includes overhauling regulations and introducing policies to encourage cryptocurrency adoption, which has spurred optimism in the market.
The cryptocurrency market, buoyed by these developments, has seen Bitcoin’s market capitalization exceed $2 trillion, and the broader crypto market now nears $4 trillion. Following the election, Bitcoin’s price surged, driven by a mix of growing institutional investment and a sense of “fear of missing out” (FOMO) among investors. Some analysts now predict Bitcoin could reach $120,000 by the end of this year and potentially surpass $150,000 by mid-2025.
Trump’s pro-crypto policies also include the appointment of Silicon Valley entrepreneur David Sacks as his cryptocurrency advisor, along with plans to nominate Paul Atkins, a known crypto supporter, to lead the Securities and Exchange Commission (SEC). These actions are seen as steps toward creating a more crypto-friendly environment in the US.
However, not all reactions are optimistic. Federal Reserve Chair Jerome Powell has cautioned that Bitcoin’s extreme volatility limits its use as a stable store of value, drawing comparisons to gold rather than a functional currency. Despite such skepticism, the pro-crypto sentiment surrounding Trump’s incoming administration continues to fuel market expectations for higher Bitcoin prices in the future.
With input from BBC and Independent.
