Emmanuel OchayiBitcoin soared to a record high on Monday, briefly surpassing $106,000 before stabilizing around $105,000 during Asian trading hours. This marks a sharp increase of over 50% since Donald Trump’s election victory on November 5, sparking fresh investor excitement.
Trump’s Crypto Plans Drive Market Optimism
The dramatic price surge follows President-elect Trump’s announcement of a possible national Bitcoin stockpile, similar to the U.S. strategic oil reserve. The plan, seen as a sign of support for cryptocurrencies, has fueled optimism in the market.
Join our WhatsApp Channel“The Bitcoin rally since the election has been parabolic,” said Peter McGuire of XM.com. “Many investors believe $120,000 is achievable by the end of the year, with talk of $150,000 by mid-2025.”
The incoming Trump administration’s approach is expected to be more crypto-friendly compared to the Biden administration’s stricter stance. Market analysts link the surge to growing investor confidence and fear of missing out (FOMO) on potential gains.
Appointments Signal Pro-Crypto Shift
Investor confidence has been further boosted by Trump’s recent appointments. David Sacks, a former PayPal executive and close ally of Trump adviser Elon Musk, will serve as the new AI and cryptocurrency czar. Market participants view this as a move that could lead to more favorable regulations for digital assets.
Trump’s decision to nominate Paul Atkins, a pro-cryptocurrency attorney, as the next head of the Securities and Exchange Commission (SEC) is also being seen as a game-changer. Current SEC Chairman Gary Gensler, known for his tough stance on crypto, announced he will step down on January 20, the day of Trump’s inauguration.
READ ALSO: Bitcoin Nears $100,000 Milestone Despite Changing Crypto Policies
Gensler’s departure is being celebrated by some crypto enthusiasts, who have criticized his regulatory measures against several cryptocurrency firms. Trump had previously criticized Gensler’s leadership, calling for a more “innovation-friendly” regulatory approach.
Market Reactions to Trump’s Pro-Crypto Stance
Trump’s support for cryptocurrency has energized Bitcoin’s momentum. Market watchers see the potential for a more defined regulatory framework under Trump’s administration, which could attract more institutional investors.
“The combination of regulatory clarity and pro-crypto leadership could make this a defining moment for Bitcoin and the broader cryptocurrency market,” McGuire said.
Analysts predict that a shift in regulatory policy could reshape the landscape for digital assets, making them more accessible to mainstream investors. With the possibility of government backing and support from top officials, Bitcoin’s path to higher valuations seems more likely.
Future Prospects and Market Concerns
As Bitcoin’s value climbs to unprecedented levels, discussions about its sustainability and the possibility of a speculative bubble are intensifying. Some analysts warn that the cryptocurrency market has experienced similar rallies followed by sharp corrections in the past.
Despite the risks, optimism remains high. Investors are betting on Trump’s more lenient regulatory approach to cryptocurrencies, which they believe will reduce uncertainty and increase the flow of institutional capital into the sector.
The coming months will be crucial for Bitcoin’s trajectory. If Trump’s plans lead to greater regulatory clarity and wider adoption, the cryptocurrency’s rally could continue. Investors and analysts alike are watching closely as Bitcoin eyes the $120,000 mark with speculation of hitting $150,000 by mid-2025.
For now, Bitcoin’s recent rise has captured the attention of global markets, as the world’s largest cryptocurrency continues to break new ground with no signs of slowing down.
Emmanuel Ochayi is a journalist. He is a graduate of the University of Lagos, School of first choice and the nations pride. Emmanuel is keen on exploring writing angles in different areas, including Business, climate change, politics, Education, and others.
