Bitcoin surpassed $98,000 on Thursday morning, setting a record high as investors backed President-elect Donald Trump’s pro-cryptocurrency agenda. While the cryptocurrency subsequently declined slightly, its notable rise (nearly 40% since the Nov. 5 election) reflects growing confidence in Trump’s approach to digital assets.
Reports suggest that Trump’s transition team has been discussing innovative crypto initiatives, including creating a national bitcoin reserve and replacing current SEC Chairman Gary Gensler with someone more supportive of blockchain and cryptocurrencies. These developments have further fueled enthusiasm among investors who see Bitcoin approaching the $100,000 milestone.
Why is Bitcoin going up?
Much of bitcoin’s rally can be attributed to Trump’s perceived cryptocurrency-friendly stance. His administration is expected to prioritize blockchain innovation and foster a more open regulatory environment for digital currencies.
Galaxy Digital CEO Mike Novogratz has expressed optimism about Trump’s approach. Speaking to Yahoo Finance, Novogratz highlighted the stark difference between Trump’s team and the previous administration.
“Everyone around the Trump table supports the digital asset space. They believe in the future of blockchain and bitcoin,” Novogratz said. “This is a stark reversal from the restrictive policies we’ve seen under Elizabeth Warren and Gary Gensler.”
ETFs See Big Inflows Amid Crypto Boom
The wave of optimism is not limited to bitcoin trading: it is also driving activity in bitcoin-related ETFs. BlackRock’s spot bitcoin ETF (IBIT) saw a massive $13 billion inflow following Trump’s election victory. This caused the iShares Bitcoin Trust to surpass $40 billion in total assets just 10 months after its debut.
Additionally, options linked to the ETF began trading on the Nasdaq earlier this week, sparking even more activity in the crypto space and further boosting investor confidence.
Trump Media Crypto Expansion Plans
Adding fuel to the fire, the Financial Times reported that Trump Media & Technology Group is in talks to acquire cryptocurrency trading platform Bakkt. This potential acquisition is seen as a significant step toward expanding cryptocurrency-related initiatives, indicating that the Trump administration could heavily integrate blockchain into its economic policies.
What’s next for Bitcoin?
As bitcoin approaches the $100,000 mark, the market remains focused on Trump’s policies. Investors are betting that a crypto-friendly administration will pave the way for broader institutional adoption and innovation in the digital asset space.
Whether through regulatory changes, new ETF approvals, or increased corporate interest, bitcoin’s current trajectory appears poised to reach new milestones.
With investor enthusiasm on the rise, all eyes are now on Trump’s next moves and the lasting impact they could have on the cryptocurrency industry.
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