Bitcoin Surges Past $105,000 as Trump Promises Crypto-Friendly Policies

Bitcoin's remarkable ascent continued today, with the cryptocurrency's price surging more than 3% during Asian trading hours, surpassing the $105,000 mark for the first time. The price peaked at $105,142 before slightly retreating, recently trading at $104,760, reflecting a 3.3% increase. This latest rally extends Bitcoin's gains since Donald Trump's election as U.S. president in November, as he announced plans to establish the country as the "capital" of cryptocurrencies.

Other digital assets also experienced price increases, with smaller tokens such as Ether and Dogecoin rising alongside Bitcoin. This surge has contributed to an overall positive sentiment in the broader crypto market.

Trump's administration is expected to foster a more favorable regulatory environment for digital assets, reversing the stringent measures imposed by outgoing President Joe Biden. He has also expressed support for the concept of a strategic national Bitcoin reserve, though many critics question the viability of such a proposal.

Aya Kantorovich, co-founder of the institutional crypto platform August, commented on the market's optimism, stating, “Many are basing their expectations on a much more favorable administration.” She noted that this optimism is reflected in the increasing demand for exchange-traded funds that invest in digital assets.

On Friday, Nasdaq Global Indexes announced that MicroStrategy Inc., a company known for its substantial Bitcoin holdings, will join the Nasdaq 100 index. This development is significant as MicroStrategy has raised billions to invest in Bitcoin. Sean McNulty, director of trading at liquidity provider Arbelos Markets, stated, “Now that MicroStrategy is on the Nasdaq, index funds can buy its shares, and that will help the company raise more capital to buy more Bitcoin.”

Bitcoin has maintained a seven-week winning streak, marking its longest such period since 2021. However, analysts note that the pace of recent gains has slowed, which could indicate a potential pullback in the near future. Tony Sycamore, a market analyst at IG Australia Pty, wrote in a note, "the pace of gains then slowed, which could be a sign that a pullback may be coming."

Since Trump's victory in the presidential election on November 5, U.S. ETFs that invest directly in Bitcoin have seen net inflows totaling $12.2 billion, while similar products for Ether have attracted $2.8 billion during the same timeframe.

By fLEXI tEAM