Bitcoin Nears $100,000 as Trump’s Election Sparks Crypto Frenzy
Bitcoin surged closer to the $100,000 milestone on Thursday, hitting $98,000 during European trading hours before settling at $96,779, a 2.4% daily increase. The dramatic rise comes amid growing expectations for a pro-crypto regulatory shift under President-elect Donald Trump. With bitcoin more than doubling in value this year and up 45% in the two weeks following Trump’s election win, the world’s largest cryptocurrency appears on the cusp of a new era of mainstream adoption.
The cryptocurrency’s journey to near six-figure levels marks a remarkable recovery from its low of $38,505 earlier this year. Investors are banking on Trump’s administration creating a favorable environment for digital assets, alongside a Congress populated by newly elected pro-crypto lawmakers.
Alicia Kao, managing director at crypto exchange KuCoin, noted:
“Everyone who’s ever bought bitcoin is now in profit. Those who invested early faced monumental challenges—technical hurdles, regulatory uncertainty, and skepticism from governments and financial institutions. They’re the real winners, not just because they’re rich, but because they were right.”
Our Earlier Article on Bitcoin – Trump’s Pro-Crypto Policies Sparks Bitcoin Rally: Record High of $80,000 Touched
A Historic Climb Fueled by Changing Sentiment
Bitcoin’s price rise has been fueled by several factors, including the approval of U.S.-listed spot bitcoin ETFs in January, which allowed institutional investors to gain exposure to the asset. This year alone, $4 billion has flowed into these ETFs, signaling increased confidence from traditional financial markets.
The Securities and Exchange Commission (SEC), long a roadblock to bitcoin ETF approvals, reversed its stance earlier this year, approving 11 spot bitcoin ETFs. This change has been pivotal, as these funds provide investors with a regulated and secure way to invest in bitcoin without directly owning the asset.
Trump’s pro-crypto stance has further energized the market. During his campaign, he pledged to make the United States the “crypto capital of the planet” and proposed creating a national bitcoin stockpile. His rhetoric has spurred a wave of optimism, with investors betting that his administration will dismantle regulations perceived as restrictive.
Bitcoin’s rapid rebound also reflects broader market enthusiasm. After falling below $16,000 in late 2022 amid a wave of bankruptcies in the crypto sector, including FTX and Celsius, bitcoin has staged an extraordinary comeback.
Key Milestones in Bitcoin’s Journey
Bitcoin’s near $100,000 valuation caps a 16-year journey marked by technological innovation, regulatory battles, and market adoption.
- 2008: Satoshi Nakamoto introduces bitcoin, laying the foundation for decentralized digital currency.
- 2010: The first retail transaction involves 10,000 BTC for two pizzas, highlighting bitcoin’s initial novelty.
- 2013-2018: Early attempts to launch bitcoin ETFs, led by the Winklevoss twins and Grayscale Investments, face rejection from the SEC due to concerns about market maturity and investor protection.
- 2020-2021: Grayscale’s trust gains SEC-reporting status, and the first U.S.-listed bitcoin futures ETF is approved, boosting institutional interest.
- 2023: A U.S. appeals court rules in favor of Grayscale’s bid to convert its trust into a spot bitcoin ETF, signaling a turning point. BlackRock and other major players file ETF applications, fueling optimism.
- 2024: The SEC approves 11 spot bitcoin ETFs in January. By March, bitcoin surpasses $70,000, and the total crypto market cap hits $3 trillion by November.
Trump’s Role in the Crypto Renaissance
Donald Trump’s presidency is shaping up to be a defining moment for bitcoin and cryptocurrencies at large. During his campaign, Trump frequently lauded digital assets, criticizing Democrats for their attempts to impose stricter regulations on the sector.
In June, he vowed to protect the crypto industry during a San Francisco fundraiser, positioning himself as a champion of innovation. A month later, at a bitcoin conference, Trump doubled down on his commitment, promising to create a national bitcoin reserve and promote the United States as a global leader in cryptocurrency.
These statements have resonated with the market. Following his election win, bitcoin gained 40%, outperforming most other assets. The surge has also spilled over into broader cryptocurrency markets, with the total market capitalization reaching an unprecedented $3 trillion.
What’s Next for Bitcoin?
With bitcoin now trading at $99,211, investors are bracing for the symbolic $100,000 mark. Market analysts believe this milestone could act as a psychological trigger for further gains, driven by both retail and institutional demand.
The approval of bitcoin ETFs has opened the floodgates for mainstream adoption. These funds offer a regulated entry point, allowing investors to bypass the technical complexities of owning and managing cryptocurrencies.
Trump’s policies are expected to further accelerate this trend. By dismantling existing regulatory barriers and encouraging innovation, his administration could solidify bitcoin’s status as a legitimate asset class.
As bitcoin approaches $100,000, its journey serves as a testament to the resilience of decentralized finance. From its humble beginnings in 2008 to its current status as a trillion-dollar asset class, bitcoin has not only survived but thrived, defying skeptics and reshaping the global financial landscape.
Learn about Bitcoin from Wikipedia – Bitcoin – Wikipedia