Market Rallies Amid Hopes for Crypto-Friendly Policies Under the President-Elect’s New Administration
Bitcoin (BTC-USD) is edging closer to the coveted $100,000 mark, bolstered by growing optimism over President-elect Donald Trump’s supportive stance toward cryptocurrency. Since his November 5th election win, the largest digital asset has surged, reaching a record high of $97,892 before slipping slightly below $97,000 as of Thursday morning in London. This rally has contributed to a massive $900 billion increase in the total cryptocurrency market, fueled by hopes that Trump’s administration will adopt a more crypto-friendly regulatory framework.
A significant boost to market sentiment is the prospect of a dedicated digital-assets policy position within the White House. Discussions about this potential role are reportedly already underway, with industry insiders advocating for direct access to the president-elect. The role would be the first of its kind in the U.S. and would offer a strategic link between policymakers and the digital-asset community, amplifying the influence of crypto proponents in shaping regulations. Trump, who previously held a critical view of cryptocurrency, has shifted his stance after witnessing substantial industry lobbying efforts, signaling a possible pivot in U.S. crypto policy.
Market analyst Tony Sycamore of IG Australia Pty highlighted the enthusiasm surrounding Bitcoin’s rally. “Buyers are strangling the sellers,” he noted, adding that demand for Bitcoin is currently “insatiable.” Although he cautioned that Bitcoin’s journey to $100,000 may not be entirely smooth, the optimism remains high as investors eagerly await this landmark achievement.
Meanwhile, MicroStrategy Inc., one of the largest corporate holders of Bitcoin, announced plans to increase funding for Bitcoin purchases through convertible senior notes, raising the target amount by nearly 50% to $2.6 billion. Originally a software firm, MicroStrategy has rebranded itself as a “Bitcoin treasury company,” amassing a stockpile valued at around $31 billion. This move signals confidence in Bitcoin’s long-term value, reinforcing its appeal as a modern-day store of value and hedge against traditional economic uncertainties.
The bullish outlook is further supported by record inflows into Bitcoin-focused exchange-traded funds (ETFs). Since Election Day, these ETFs have seen a net inflow of $5.8 billion, with total assets now surpassing $100 billion. According to data from Bloomberg, this reflects growing institutional interest in Bitcoin as an investment asset, contributing to its momentum.
Caroline Mauron, co-founder of Orbit Markets, underscored the psychological impact of the $100,000 level, describing it as a symbolic target for Bitcoin enthusiasts. However, she also warned of the potential for increased volatility, as bets in Bitcoin options have shown a surge in activity.
As Trump prepares to take office, his administration’s stance toward crypto could prove pivotal for the market’s future. Trump has pledged to foster a regulatory environment conducive to crypto growth and even hinted at establishing a Bitcoin reserve for the U.S., though the specifics of this proposal remain uncertain. His pro-crypto position marks a stark contrast from his earlier skepticism and from the regulatory crackdown seen during the 2022 market downturn, which exposed fraudulent practices and led to enforcement actions by the U.S. Securities and Exchange Commission.
With regulatory winds shifting, the crypto market is basking in newfound optimism. Whether Bitcoin can reach the historic $100,000 milestone remains to be seen, but the momentum generated by Trump’s endorsement has certainly put this goal within reach, creating a wave of excitement across the industry.
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