Bitcoin soared to a record high on Friday, inching closer to the landmark $100,000 threshold. This remarkable rally comes amid optimism about a more crypto-friendly regulatory environment under the newly elected Trump administration.
The cryptocurrency has more than doubled in value in 2024, with a 45% surge since Nov. 5, when voters not only re-elected Donald Trump but also ushered in a wave of pro-crypto lawmakers into Congress.
On Friday, Bitcoin briefly exceeded $99,800 before settling around $99,383, up 1.33% for the day. Despite the slight pullback, momentum remains strong, with the cryptocurrency on track for its third consecutive week of 10%-plus gains and its best monthly performance since February.
Bitcoin has been a standout in the so-called “Trump trades”, benefiting from policies anticipated to favor digital assets. Trump has openly embraced crypto, pledging to make the U.S. the “crypto capital of the planet” and even proposing a national Bitcoin reserve during his campaign.
A Shift in Regulatory Sentiment
Investors are betting on reduced regulatory pressure as SEC Chair Gary Gensler announced he would step down in January. Under Gensler, the SEC had intensified scrutiny of the industry, suing major exchanges like Coinbase, Kraken, and Binance for alleged regulatory violations.
A notable milestone was reached earlier this year with the approval of U.S.-listed Bitcoin ETFs, which had previously faced resistance from the SEC. These ETFs have unlocked broader access to Bitcoin for both retail and institutional investors, attracting over $4 billion since the election.
Broader Market Reaction
The surge in Bitcoin prices has bolstered crypto-related stocks. MicroStrategy, a major Bitcoin holder, saw its stock climb 6.2% on Friday. While the pace of gains in crypto equities slowed, trading activity remained robust, reflecting sustained interest in the digital asset sector.
Looking Ahead
As Bitcoin edges closer to mainstream acceptance, experts remain divided. Shane Oliver, Chief Economist at AMP Sydney, highlighted the difficulty of valuing the asset but acknowledged its growing credibility:
“The longer it survives, the more seriously it’s taken. It has a momentum aspect, and right now, momentum is up.”
Bitcoin’s trajectory this year—up 130%—reinforces its position as a top-performing asset. With regulatory winds shifting and institutional support growing, its climb toward $100K could signal a new chapter in the cryptocurrency’s evolution.