Bitcoin Surges Past $100,000 as Trump’s Election Fuels Expectations of Friendly Regulatory Environment
The world’s largest cryptocurrency, bitcoin, hit a record high above $100,000 on Thursday, just days after the election of Republican Donald Trump as US president. The price surge is driven by expectations of a favorable regulatory environment for cryptocurrencies under the new administration.
Since Trump’s win on November 5, the price of bitcoin has surged around 45% as investors poured capital into US-based exchange-traded funds (ETFs) that track the price of bitcoin.
Analysts and investors believe that the decisive victory of Trump will lead to a more relaxed regulatory environment, paving the way for greater institutional investment and adoption of digital currencies.
Institutional investors are already beginning to take notice, with bitcoin-backed ETFs seeing increased inflows and investment in the sector.
Exchange-traded products that track the price of bitcoin, such as the ProShares BITCOIN Strategy ETF, have seen a flood of capital as investors seek to benefit from the rising market.
Despite the optimism, some experts caution that the cryptocurrency market remains highly speculative and volatile, with prices subject to sharp fluctuations.
“We’re seeing a lot of speculation, a lot of hype, and a lot of short-term thinking,” said Dan Coatsworth, an investment analyst at AJ Bell. “This is not something that’s suitable for everyone. It’s still a high-risk asset.”
However, others believe that the milestone of $100,000 is a significant achievement for the cryptocurrency industry, marking a major step towards mainstream acceptance.
“It’s not just a number; it’s a symbol of the growing maturity of the crypto market,” said Bobby Ong, co-founder of Coingecko. “It’s a testament to the growing acceptance of cryptocurrencies as a legitimate asset class.”
With the US presidential elections now behind us, the attention turns to the potential implications for the cryptocurrency market. Many experts believe that the new administration will usher in a more favorable regulatory environment, driving greater institutional investment and adoption of digital currencies.
As the market continues to perform, investors are looking for the next level of support, with some analysts predicting a price target of $105,000 in the coming weeks.
