Bitcoin has surged to a new all-time high, surpassing $106,000 for the first time ever, continuing its impressive rally since Donald Trump’s victory in the November 5th election. The world’s leading cryptocurrency briefly hit $106,000 (£83,890), before slightly pulling back to around $105,000 in Monday's trading session in Asia.
Bitcoin Price Surge: What’s Driving the Rally?
The recent Bitcoin price surge is largely attributed to growing investor confidence in the cryptocurrency market, especially with the upcoming Trump administration. Many experts believe that Trump’s policies will be more favorable to cryptocurrencies compared to the Biden administration, spurring further gains in Bitcoin’s value.
On Thursday, President-elect Donald Trump reiterated his intention to create a national Bitcoin reserve, similar to the country’s strategic oil reserve, which has added to the positive sentiment around Bitcoin’s future. This has sparked interest in Bitcoin as a store of value, leading to increased demand from both retail and institutional investors.
Bitcoin’s Bullish Forecast: $120,000 by Year-End?
Peter McGuire, an expert from trading platform XM.com, told the BBC that the Bitcoin rally since the election has been "parabolic," fueled by “FOMO” (Fear of Missing Out). Many cryptocurrency investors are now setting their sights on Bitcoin reaching $120,000 by the end of 2024, with some even speculating that Bitcoin could exceed $150,000 by mid-2025.
As Bitcoin continues to climb, more investors are looking to capitalize on the momentum, which has created a sense of urgency in the market. Bitcoin’s price volatility and its potential for significant returns have made it an attractive investment option for those seeking to diversify their portfolios.
Trump’s Crypto Agenda: A Boost for Bitcoin?
Trump’s strong stance on cryptocurrencies has further fueled optimism in the Bitcoin market. Earlier this month, Trump appointed Silicon Valley entrepreneur David Sacks as his official advisor on artificial intelligence (AI) and cryptocurrency. Sacks, a former PayPal executive and close ally of Elon Musk, has been a vocal supporter of crypto innovation.
Additionally, Trump has announced plans to nominate pro-cryptocurrency lawyer Paul Atkins as the next chairman of the U.S. Securities and Exchange Commission (SEC). The potential appointment of Atkins, who has been critical of the SEC’s regulatory stance on digital currencies, is seen as a positive sign for the future of Bitcoin and other cryptocurrencies.
SEC’s Gary Gensler to Step Down: What This Means for Bitcoin?
SEC Chairman Gary Gensler, who has faced criticism for his crackdown on cryptocurrency firms, has announced he will step down from his role on January 20, 2025, the day Trump is set to take office. Trump had previously pledged to remove Gensler from the SEC, citing concerns over his aggressive stance on regulating cryptocurrency markets. This change in leadership is expected to create a more favorable environment for Bitcoin and other digital assets.
Source: bbc.co.uk
