Bitcoin rose to a new record high, breaking the $94,000 level 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.
Bitcoin, the world’s biggest and best-known cryptocurrency, has more than doubled this year. As of 6:05 GMT, Bitcoin gained 0.32 percent to $92,724, after reaching a record high of $94,078 at the end of the previous session.
Analysts noted that Bitcoin’s rise to a record high was supported by the Trump deal talk report as well as traders taking advantage of the first day of options trading on the Nasdaq over BlackRock’s Bitcoin ETF.
Despite momentum remaining strong, the crypto market retreated due to rising tensions between Russia and Ukraine. Bitcoin’s pace of recent gains also slowed as markets awaited more tangible cues on policy under incoming president Donald Trump.
Market awaits Trump’s policy direction
The crypto market has witnessed a remarkable surge since the U.S. presidential election on November 5. With Trump’s win, traders are betting that the president-elect will support digital assets, providing a less restrictive regulatory regime and stimulating growth in the market after a few months of stillness.
Trump had promised crypto-friendly regulations, ramping up hopes that such a scenario would draw more institutional capital into crypto. Bitcoin exchange-traded funds saw heavy inflows since Trump’s win. However, market focus now shifts to what Trump’s policies will entail for crypto, with the president-elect set to take office in about two months.
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.
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Institutional investments grow
The growing excitement has taken the global cryptocurrency market’s value above $3 trillion to a record high, based on analytics and data aggregator CoinGecko. Notably, Bitcoin has registered its highest trading volumes since mid-March in recent weeks, signaling buying activity from larger market participants, such as institutional investors.
“ETH ETF flows are going to surprise people in 2025. There is growing institutional demand for ETH exposure,” stated Bitwise chief investment officer Matt Hougan.
Ethereum gained 0.05 percent to $3,112.6 while Dogecoin fell 0.29 percent to $0.39.
Sentiment towards Bitcoin was also boosted by MicroStrategy, the world’s biggest corporate holder of the coin, buying $4.6 billion of the coin in the past week. MicroStrategy executive chairman Michael Saylor indicated that the company will keep buying more coins, issuing more debt to fund its purchases. 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.
“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,” added Hougan.
