Share
Home Sector Markets Bitcoin soars past $90,000 amid Trump-fueled crypto rally

Bitcoin soars past $90,000 amid Trump-fueled crypto rally

Trump embraced crypto during his campaign, promising to make the U.S. the 'crypto capital of the planet'
Bitcoin soars past $90,000 amid Trump-fueled crypto rally
Ethereum has also risen 37 percent since election day, gaining 1.17 percent today to $3,228.9, while Dogecoin was up more than 150 percent

Bitcoin traded over $90,000 on Thursday as the crypto market rallied on expectations that U.S. president-elect Donald Trump’s potential policies will support cryptocurrencies. Bitcoin, the world’s biggest cryptocurrency, has become one of the most interesting movers since the U.S. election day on November 5.

The token hit a record high of $93,226.6 on Wednesday but swiftly fell from the level. At 4:06 GMT, Bitcoin surged to $90,629 before declining to $90,230 at 6:13 GMT, losing 0.32 of its latest gains. 

Ethereum has also risen 37 percent since election day, gaining 1.17 percent today to $3,228.9, while Dogecoin was up more than 150 percent.

Pro-Bitcoin administration raises investor sentiment

With the election of Trump as president, that market is expecting Bitcoin and the overall crypto market to perform well in the medium and long term. A pro-Bitcoin administration, senate, and potential legislation may not only give investors a push to hold Bitcoin but also the possibility of Bitcoin becoming a strategic reserve asset for the U.S. Treasury.

“The asset is now in price discovery, and the momentum from this could continue to push the price higher, meaning Bitcoin could potentially reach six figures within a few months,” said Josh Gilbert, market analyst at eToro.

Trump embraced crypto during his campaign, promising to make the U.S. the “crypto capital of the planet” and accumulate a national stockpile of Bitcoin. A pro-Bitcoin administration may also open the door for banks, custodians, and exchanges to participate in blockchain technology at an unprecedented level.

Analysts warned, however, that Trump’s near-term priorities will likely divert to other matters but crypto investors see an end to scrutiny under U.S. Securities and Exchange Commission chair Gary Gensler whom Trump has said he will fire.

Trump also launched a new crypto business, World Liberty Financial, in September. Although details about the business are few, investors have taken his personal interest in the sector as a friendly signal. In addition, billionaire Elon Musk, a major Trump ally, is also a proponent of cryptocurrencies.

Read: Oil prices drop as U.S. inventory data misses expectations, markets look for clarity on Chinese demand

Institutional appetite grows

In October, MicroStrategy unveiled plans to acquire $42 billion in Bitcoin over three years. Between October 31 and November 10, the software company and Bitcoin investor announced it had spent about $2 billion buying Bitcoin. With this latest purchase, MicroStrategy’s Bitcoin holdings have reached $25.15 billion. Following MicroStrategy’s latest purchase, the company’s price skyrocketed to new all-time highs of $357 per share, reflecting investor confidence in its Bitcoin-focused strategy.

“A pro-crypto regulatory environment will provide air cover for institutional investors who have long wanted to allocate to the space. It’s a game-changer. An equal part of this rally is that people have stopped selling. Long-term owners are no longer willing to part with Bitcoin below $100k, and short-sellers don’t want to step in front of a freight train,” stated Bitwise chief investment officer Matt Hougan.

MicroStrategy is not the only major player amid the surge as overall institutional appetite for the crypto is growing at a time when interest rates are set to fall sharply and risk assets are gaining more traction. Monthly inflows to Bitcoin ETFs are picking up significantly, with over $5 billion in net flow in October.

For more news on markets, click here.

The stories on our website are intended for informational purposes only. Those with finance, investment, tax or legal content are not to be taken as financial advice or recommendation. Refer to our full disclaimer policy here.