Bitcoin surpassed $95,000 for the first time Wednesday evening as investors continue to price in a second term for Donald Trump. The price of the
flagship cryptocurrency recently rose more than 3% to $97,646.68, according to Coin Metrics. It had previously reached as high as $97,788.00.
Bitcoin brokerage MicroStrategy’s shares rose 3% in after-hours trading. Mining stocks also rose, with Mara Holdings up 4%.
Bitcoin has been hitting new records consistently this month amid hopes that Trump will usher in a golden age for cryptocurrencies, including more support for the economy and the country’s potential to store or hoard Bitcoin is expected to reach $100,000 this year and double by the end of 2025.
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“Bitcoin’s price continues to be driven by a number of factors including improved liquidity conditions, increased institutional adoption, and a regulatory environment that has flipped from a headwind to a tailwind,” said Sam Callahan, an analyst at Swan Bitcoin.
Other times, Trump could mean higher spending, potentially higher inflation, and a shift in the dollar’s role around the world, all of which would bode well for Bitcoin’s price.
The cryptocurrency market has grown by $800 billion since Trump won the US presidential election on November 5. Bitcoiners see the price’s daily market as the ultimate proof of its legitimacy. But despite seeing the record, critics remain cautious.
But Trump’s claims of supporting the crypto framework and the US Bitcoin reserve debate could change the market.
Investors are watching Trump’s appointments for Treasury secretary and the Securities and Exchange Commission this week.
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“We’re still very much in a phase of pricing in the Trump trade,” said Joel Kruger, market strategist at LMAX Group.
He also said that “we’ve seen a lot of interest in Bitcoin and ETH space ETFs this year,” with options trading on these ETFs starting Tuesday, calling it “another sign of the cryptocurrency market’s development.”
Options on the BlackRock iShares Bitcoin Trust ETF (IBIT) began trading on Nasdaq on Tuesday. Greyscale Bitcoin Trust (GBTC), Grayscale Bitcoin Mini Trust (BTC), and Bitwise Bitcoin ETF (BITB) are expected to have options.
Elsewhere, investors are waiting for Nvidia earnings after hours, which could affect Bitcoin’s price. Cryptocurrencies typically benefit from broad competition in risky assets; this year, they’re benefiting even more as domestic investors are more comfortable with the help of Bitcoin ETFs.
