Bitcoin surges on Trump’s pro-crypto policies and growing institutional interest.
Bitcoin Inches Toward Historic Milestone
Bitcoin surged near $100,000 on Thursday, fueled by optimism over President-elect Donald Trump’s crypto-friendly policies. The cryptocurrency traded between $98,000 and $99,000, briefly hitting $99,073, as market sentiment remained bullish.
Bitcoin’s value has soared by 40% since Trump’s election and more than doubled year-to-date. This rally reflects increased confidence in a regulatory environment that favors cryptocurrency innovation and investment.
Trump’s Crypto-Friendly Campaign Promises
During his campaign, Trump pledged to transform the U.S. into the “crypto capital of the planet” and proposed establishing a national Bitcoin reserve. His promise to replace outgoing SEC Chair Gary Gensler, known for his strict regulatory stance, has further boosted investor morale.
Trump’s venture into the crypto space, including the launch of World Liberty Financial in September, signals a personal commitment to digital assets. Although details remain sparse, the initiative adds to the optimism driving Bitcoin’s upward momentum.
Institutional Investment Fuels Growth
The launch of U.S.-listed Bitcoin ETFs in January catalyzed institutional interest, with over $4 billion flowing into ETFs since Trump’s victory. BlackRock’s Bitcoin ETF debut showcased strong demand, with call options outpacing puts.
Crypto-related stocks have also benefited, with Bitcoin miner MARA Holdings seeing a 2.3% rise. Analysts liken Bitcoin’s current trajectory to gold’s rise in the 1970s, highlighting its appeal as a hedge against traditional markets.
Challenges and Criticism
Despite its impressive rise, Bitcoin faces criticism over its energy consumption and connections to illicit activities. In 2022, crypto crime accounted for $24.2 billion in transactions tied to scams and sanctioned entities, according to Chainalysis.
Environmental concerns also persist, with mining operations drawing scrutiny for their energy use and potential impact on power grids.
Future Outlook
As Bitcoin approaches the $100,000 mark, investors remain optimistic about its mainstream acceptance. Analysts believe pro-crypto policies under Trump’s administration will continue to drive growth in the cryptocurrency sector.
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