In a spectacular run spurred by hopes of a more lenient regulatory environment under a Donald Trump government, Bitcoin reached a new record high on Friday, with its eyes firmly set on the $100,000 barrier.
Its value has more than quadrupled this year and has increased by almost 45% after Trump’s resounding election victory on November 5, which also saw the election of many pro-crypto politicians to Congress.
The cryptocurrency is headed for its highest monthly performance since February, having risen slightly over 1% on the day to $99,380.
Bitcoin’s rise has made it one of the most notable beneficiaries of so-called “Trump trades,” which are assets that are thought to benefit or suffer from Trump’s plans.
Since its inception sixteen years ago, the cryptocurrency also seems to be on the verge of becoming widely accepted. The market has benefited from the January approval of bitcoin exchange-traded funds that are listed in the United States.
According to Shane Oliver, chief economist and director of investment strategy at AMP Sydney, “the longer it survives, the more seriously it is taken. That’s just the reality of things.”
“I find it really difficult to appraise it as an investor and economist—it’s anybody’s guess. However, it does have a momentum component, and right now, that momentum is increasing.
In fact, this year, bitcoin has increased by over 130%. During his campaign, Trump embraced digital assets, vowing to build a national bitcoin stockpile and turn the US into the “crypto capital of the planet.”
Gary Gensler, the chair of the US Securities and Exchange Commission, announced on Thursday that he will resign in January when Trump takes office, signaling to cryptocurrency investors that the enhanced scrutiny will cease.
