By Agency Report
Bitcoin has soared to history-breaking record of $106,000 (£83,890) on Monday before stabilising around $106,000 during Asia trade.
The cryptocurrency’s meteoric rise—over 50% since Donald Trump’s election victory on November 5—has reignited investor enthusiasm and speculation about its future trajectory.
The rally comes as the incoming Trump administration signals a more cryptocurrency-friendly approach compared to the Biden White House.
On Thursday, President-elect Trump announced plans to consider a national Bitcoin stockpile, akin to the US strategic oil reserve, fueling optimism in the market.
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Market analysts are attributing the surge to a combination of policy expectations and fear of missing out (FOMO).
“The Bitcoin rally since the election has been parabolic,” Peter McGuire of XM.com said “Many investors believe $120,000 is achievable by the end of the year, with talk of $150,000 by mid-2025.”
Trump’s recent appointments are further bolstering confidence in the cryptocurrency market. Silicon Valley entrepreneur David Sacks, a former PayPal executive and close ally of Trump adviser Elon Musk, has been named as the new AI and cryptocurrency czar.
In another significant move, Trump plans to nominate Paul Atkins, a pro-cryptocurrency attorney, as head of the Securities and Exchange Commission (SEC).
This follows the announcement by current SEC Chairman Gary Gensler that he will step down on January 20, coinciding with Trump’s inauguration.
Gensler, known for his stringent regulatory stance on cryptocurrency, had become a polarising figure after pursuing legal actions against several crypto firms.
Trump had previously vowed to replace Gensler, criticising his leadership and calling for a more innovation-friendly regulatory environment.
Investors are closely monitoring the Trump administration’s actions, which could dramatically reshape the regulatory landscape for digital assets. With growing institutional interest and potential government backing, Bitcoin’s rally is gathering momentum.
“The combination of regulatory clarity and pro-crypto leadership could make this a defining moment for Bitcoin and the broader cryptocurrency market,” said McGuire.
As Bitcoin’s value climbs to unprecedented heights, questions linger about its sustainability and the potential risks of a speculative bubble.
However, for now, the cryptocurrency community is energized by the prospect of a US administration that views digital assets as an opportunity rather than a threat.
The coming months will reveal whether Bitcoin can sustain its upward trajectory—or if the market is headed for another cycle of volatility. For now, the world’s largest cryptocurrency is basking in newfound optimism as it sets its sights on $120,000 and beyond.
