Crypto booms: Re-run of President Trump aids Crypto to soar 40% in 2024 nearing $100,000 record
In a significant development in the US market, Bitcoin hit a new high of more than $96,000 on November 21 supported by firm stance of Trump on crypto. The currency hit $96,898 in Asian trading hours, providing further push to reach the $100k mark which analysts have predicted may happen sooner than people expect.
Bitcoin has nearly doubled this year and is up more than 40% in two weeks following Trump’s win and the election of several crypto-friendly Congress members. “While it's now firmly into overbought territory, it is being drawn toward the $100k level,’’ said IG Markets analyst Tony Sycamore.
Pro-Crypto Policies Drive Market Optimism
The current favourable market sentiment is fueled by the Trump administration’s pro-crypto policies. Donald Trump’s campaign pledges to make the United States the “crypto capital of the planet” and create a national bitcoin asset have fuelled the market. His administration is expected to provide more definitiveness on their laws regarding cryptocurrencies, a longstanding demand by the market.
Over $4bn has been invested in US-listed Bitcoin exchange-traded funds since the election or some 250k Bitcoins. Newly launched contracts for BlackRock’s bitcoin ETF (IBIT.O) proved popular this week, with call options – which are bets on an increase in the price of the underlying asset – dominating the market.
“This excitement is bullish not only for bitcoin or crypto in general but an even broader bitcoin/blockchain ecosystem that is emerging today,” explained Will Peck, the head of digital assets at WisdomTree.
Crypto-Linked Stocks Surge
The growth of Bitcoin has positively impacted the development of the bigger category of cryptocurrencies. Overnight, shares in bitcoin miner MARA Holdings rose close to 14%. MicroStrategy, a software firm that owns a large amount of bitcoins rose to 10% and its market capitalization touched $100 billion.
The people within the automotive industry are hopeful but tend to be guarded about it. Peck also highlighted this at a global exchange-traded fundraiser and said, “Many are wondering if this administration will bring the regulatory clarity the crypto community has been waiting for. It's likely too soon to say.”
According to a Reuters report, Peck further added, “We see all of this excitement as bullish not only for bitcoin or crypto broadly but the entire blockchain-enabled ecosystem that is growing today.”
Conclusion: A Pivotal Moment for Bitcoin and Crypto
While bitcoin is near the $100,000 mark, investor attention continues on how Trump will influence the developing market of digital assets. For now, the kind of momentum that is being experienced in the cryptocurrency market continues to rise.