Bitcoin (BTC-USD), the leading cryptocurrency, surged towards the $100,000 mark for the first time in its history during early trading on Thursday. The digital asset reached a high of $98,342.13, marking a 5% increase before pulling back slightly. This achievement signifies the fourth consecutive session in which Bitcoin has established a new all-time high, showcasing its robust rally in the market.
The cryptocurrency’s price has been on an upward trajectory following Donald Trump’s victory in the recent U.S. presidential election. Trump’s potential influence on the crypto market was further highlighted this week with the nomination of Howard Lutnick, the CEO of Cantor Fitzgerald known for his bullish stance on cryptocurrencies, as Commerce Secretary. Moreover, reports emerged that Trump Media & Technology Group (TMTG), associated with the president-elect, is negotiating to acquire Bakkt, a digital-asset trading platform.
The anticipation of a six-figure valuation for Bitcoin stems from expectations of a more crypto-friendly regulatory environment under Trump’s administration. In fact, President-elect Donald Trump’s administration is reportedly considering establishing a new position within the White House to oversee cryptocurrency policy, marking a significant shift in how digital assets might be handled at the federal level. According to reports, discussions are underway with the digital asset industry to potentially create this pioneering role, which would focus on shaping and coordinating crypto-related policies across government agencies. This move is part of broader considerations by Trump’s transition team, which has been actively vetting candidates for this position.
Analysts, including Tom Lee, the Head of Research at Fundstrat, believe that the path to $100,000 is becoming increasingly feasible due to these regulatory prospects alongside significant institutional investments flowing into Bitcoin exchange-traded funds (ETFs).
This bullish sentiment in the crypto market is also reflected in the performance of crypto-related stocks. Shares of MicroStrategy (MSTR), the largest publicly traded corporate holder of Bitcoin (BTC-USD), which surged 13% to a record closing high on Monday after announcing a $4.6 billion BTC acquisition and plans to raise $1.75 billion to buy more, are up another 13% to $536.50 in Thursday’s premarket trading. So far in 2024, MicroStrategy’s stock has skyrocketed over 650%, with a 833% increase year-over-year and a gain of more than 44% in the past five sessions.
Michael Saylor’s bold bet on Bitcoin is clearly paying off. The company’s stock continues to climb, bolstered by substantial returns on its Bitcoin holdings.
With 331,200 BTC purchased at an average price of mid $88K levels, MicroStrategy is sitting on roughly $13.7 billion in unrealized profits, further cementing its position as a major player in the cryptocurrency space.
The ongoing rally in Bitcoin, propelled by political developments and investor interest, continues to reshape the financial landscape, highlighting the cryptocurrency’s growing acceptance as both an investment and a hedge against traditional economic indicators.
Disclaimer: This page contains affiliate links. If you choose to make a purchase after clicking a link, we may receive a commission at no additional cost to you. Thank you for your support!
Leave a Reply