Bitcoin touches $100K for first time amid Trump's crypto-friendly policies

Bitcoin on Thursday touched $100,000 for the first time, extending its rally post the US presidential elections which saw a re-election of former president Donald Trump.

The price of Bitcoin, which is often referred to as 'digital gold', has jumped over 50% since November as early exit polls indicated a victory for Trump, who is known for his pro-crypto stance.

“Bitcoin has hit the historic $100,000 mark, driven by favorable market dynamics, growing US regulatory clarity, and institutional adoption through Bitcoin ETFs. The cryptocurrency market is experiencing a surge in optimism as governments and institutions worldwide begin to embrace blockchain technology, paving the way for broader adoption and investment in digital assets. This renewed enthusiasm reflects a maturing ecosystem poised for sustained growth,” said Vishal Sacheendran, Head of Regional Markets at Binance, in a statement.

The rally comes a day after the former president nominated crypto-friendly lawyer Paul Atkins as the next Securities and Exchange Commission’s (SEC) Chair, signalling more lenient regulations for the crypto market.

According to Rahul Pagidipati, CEO of ZebPay, the crypto market’s total capitalisation has now crossed the $3.5 trillion mark. “Bitcoin is now effectively one of the top 10 most valued assets in the world, ranking above all commodities except gold and higher than most companies,” he said.

“Based on historical post-halving performance- analysts project that Bitcoin could reach a peak of around $150,000 in 2025. If the past is any indicator, the April 2024 halving could spark a rally of 300–400%, aligning perfectly with this forecasted targe", said Balaji Srihari, Business Head at CoinSwitch.

“However, in this dynamic environment, investors must stay informed about market developments to make confident and well-informed decisions,” he added.

The surge also comes amidst discussions of creating a strategic reserve of bitcoins in the US, a project Trump proposed during the Bitcoin 2024 conference. The reserve would be a set of external assets that will be immediately available to meet financing needs and will be under the control of monetary authorities.