Bitcoin neared the $100,000 level on Friday as the election of Republican Donald Trump as U.S. president spurred expectations that his administration will create a friendly regulatory environment for cryptocurrencies.
The world’s largest cryptocurrency has been trading between $98,000 and $99,000 since the previous session, briefly touching $99,073 on Thursday. As of 6:49 GMT, Bitcoin gained 0.56 percent to $99,000.
Bitcoin has more than doubled in value this year and gained about 40 percent in the two weeks since Trump was voted in as the next U.S. president and several pro-crypto lawmakers were elected to Congress.
Trump’s election boosts crypto demand
Trump embraced digital currencies during his campaign, promising to make the United States the “crypto capital of the planet” and to accumulate a national stockpile of Bitcoin. The rising optimism came as crypto investors saw an end to increased scrutiny under U.S. Securities and Exchange Commission chair Gary Gensler, whom Trump has said he will replace.
Trump also announced a new crypto business, World Liberty Financial, in September. Although details about the business have been few, investors have taken his personal interest in the sector as a positive signal.
Bitcoin also surged after the release of a report that Donald Trump’s social media company Truth Social was in talks to buy crypto trading firm Bakkt, which added to hopes of a cryptocurrency-friendly regime under the incoming administration. A pro-Bitcoin administration may also open the door for banks, custodians, and exchanges to participate in blockchain technology at an unprecedented level.
Billionaire Elon Musk, a major Trump ally, is also supportive of cryptocurrencies. Over 16 years after its creation, Bitcoin seems closer than ever to mainstream acceptance.
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U.S.-listed Bitcoin ETF approval propels market
Bitcoin’s rebound from a decline below $16,000 in late 2022 has been rapid. The approval of U.S.-listed Bitcoin exchange-traded funds in January this year propelled the market. The Securities and Exchange Commission had long attempted to block ETFs from investing in Bitcoin, citing investor protection concerns. However, the products have allowed more investors, including institutional investors, to gain exposure to Bitcoin.
More than $4 billion has streamed into U.S.-listed Bitcoin ETFs since the election. This week, the market saw a strong debut for options on BlackRock’s ETF, with call options more popular than puts.
