Bitcoin at record high, targeting $100,000
Bitcoin hit a new all-time high on Friday, with its sights firmly set on the $100,000 mark (approximately Rs. 84.4 lakh), in a stellar rally for the cryptocurrency fueled by expectations of a friendlier regulatory environment under Donald Trump’s administration.
Its value has more than doubled this year and is up about 45 percent since Trump’s landslide election victory on November 5, which also saw a slew of pro-crypto lawmakers elected to Congress.
The cryptocurrency rose just over 1 percent on the day to $99,380 (about Rs 83.9 lakh) and is on track for its best monthly performance since February.
The surge has made bitcoin one of the standout winners of so-called “Trump trades” – assets seen as winning or losing due to Trump’s policies.
The cryptocurrency has also been on the cusp of mainstream adoption since its inception 16 years ago. The approval of US-listed bitcoin exchange-traded funds in January this year has boosted the market.
“The longer it survives, it’s taken more seriously, that’s just the reality,” said Shane Oliver, chief economist and head of investment strategy at AMP Sydney.
“As an economist and an investor, I find it very difficult to value it… that’s anyone’s guess. But it does have a momentum aspect and right now the momentum is up.”
In fact, Bitcoin is up about 130 percent this year.
Trump embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet” and build a national stockpile of bitcoin.
Crypto investors are seeing an end to increased scrutiny under Gary Gensler, chairman of the U.S. Securities and Exchange Commission, who said Thursday he would resign in January if Trump takes office.
Under Gensler, the SEC sued exchange Coinbase, Kraken, Binance and others, claiming their failure to register with the agency violated SEC rules, allegations the companies deny and are fighting in court.
© Thomson Reuters 2024
