Bitcoin surged past the $95,000 mark on Wednesday evening, setting yet another record. According to Coindesk, the world’s largest cryptocurrency climbed further to $97,000 on Thursday morning.
On Tuesday, Bitcoin hit a peak of $94,078 before closing at $94,000. Analytics platform CoinGecko reported that the global cryptocurrency market value also exceeded $3 trillion, marking another milestone.
Following Donald Trump’s victory in the U.S. election, investor interest in Bitcoin has surged. The flagship cryptocurrency was last up over 3%, trading at $97,646.68, with an intraday high of $97,788.00, as per Coin Metrics.
Reacting to the new record set by Bitcoin, an analyst at Swan Bitcoin Sam Callahan said, “Bitcoin’s price continues to be driven by a number of factors including improved liquidity conditions, increased institutional adoption, and a regulatory environment that has flipped from a headwind to a tailwind,”
“Over the past few weeks, Bitcoin has consistently reached new record highs. Investors are particularly hopeful that Donald Trump’s leadership will usher in a new era for cryptocurrency, with more favorable regulation and the potential establishment of a national bitcoin reserve or stockpile.
However, analysts have also cautioned about increasing budget deficits, potential inflation, and changes in the international role of the U.S. dollar, all of which could have a positive impact on Bitcoin’s price.
In addition, shares of MicroStrategy, a company seen as a bitcoin proxy, rose by 3% in after-hours trading. Bitcoin mining stocks also saw gains, with Mara Holdings up by 4%.
With the latest surge, Bitcoin has already risen more than 127% in 2024, and it is now widely expected to hit $100,000 this year, potentially doubling by the end of 2025.”
Trump and Bakkt’s continued effect on bitcoin
Bitcoin’s recent surge has been significantly influenced by the announcement of Donald Trump’s social media and technology company (TMTG) nearing an acquisition of Bakkt, a prominent cryptocurrency trading platform. The acquisition, which is set to expand TMTG’s presence in the crypto space, has played a key role in driving market developments.
TMTG, primarily owned by President-elect Donald Trump, is in advanced talks to acquire Bakkt, which is currently valued at over $150 million, according to Financial Times. However, the deal will exclude Bakkt’s crypto custody business, which is projected to face challenges.
Following the announcement, shares of Trump Media surged by 16%, reaching $32, while Bakkt’s shares skyrocketed by 162%, hitting $29.
In addition to Bitcoin, other cryptocurrencies, such as Dogecoin, have surged since the Nov. 5 election. Crypto traders are optimistic that the “crypto-friendly” stance promised by Trump will lead to a more favorable regulatory environment for digital assets, revitalizing Bitcoin after a period of downturn.
During his campaign, Trump positioned himself as the “crypto candidate,” actively supporting digital currencies by accepting donations in various crypto assets, signaling his endorsement of the sector.
A month before the election, Trump launched World Liberty Financial, a decentralized finance (DeFi) protocol aimed at bridging traditional finance and DeFi. This initiative was seen as part of his broader strategy to establish influence in the rapidly growing crypto market.
At a Bitcoin conference in Nashville, Trump declared his intention to make the U.S. the global crypto capital, hinting at plans to establish a crypto reserve that could potentially help cover the nation’s $36 trillion debt.
His victory at the US election has also seen the value of BTC, the world’s largest cryptocurrency by market cap, to multiple all-time highs in weeks.
Tony Sycamore, market analyst at IG, said Bitcoin’s rise to a record high was supported by the Trump deal talk report, and traders were taking advantage of the first day of options trading on the Nasdaq over BlackRock’s BTC.
Chris Weston, head of research at Australian online broker Pepperstone, said there is real underlying buying pressure for Bitcoin, and “another kick higher should bring in a fresh chase from those who like to buy what’s strong.”