Bitcoin is inching closer to $100,000 amid optimism over US president-elect Donald Trump’s pro-cryptocurrency stance.
The world’s leading cryptocurrency topped $96,000 for the first time, reaching a record-high value of just over $97,522.
Several cryptocurrencies, including bitcoin, have been on a record-breaking price rally amid what’s being called the “Trump bump” crypto frenzy.
Bitcoin’s value has more than doubled since the start of this year. It has gone up about 45 per cent in the two weeks since Mr Trump’s election.
During his campaign for the White House, Mr Trump declared himself as a pro-crypto candidate and promised to end what he called the “persecution” of the crypto industry and to position the US as the “bitcoin superpower of the world”.
In July, he promised to form a crypto advisory council and create a strategic reserve for bitcoin from the stockpile seized from financial criminals.
Mr Trump even floated the idea of using bitcoin to “pay off the $35 trillion” US national debt in August.
“Hand them a little crypto check, right? We’ll hand them a little bitcoin and wipe out our $35 trillion,” he told Fox Business.
The crypto rally has also been sparked by the election of several pro-crypto lawmakers to the US Congress who’ve hinted at a friendlier regulatory approach towards digital currencies.
Several pro-crypto public figures such as Elon Musk are also expected to fill leadership roles in the government.
Mr Trump promised that one of his first moves as president would be to sack the Securities and Exchange Commission chairman Gary Gensler, who led a crackdown on the crypto industry over the last three years.
Amid growing optimism over the US government shifting to a pro-crypto stance, there is a much greater possibility of bitcoin hitting six figures before the end of the year.
“While it’s now firmly into overbought territory, it is being drawn toward the $100k level,” IG Markets analyst Tony Sycamore told Reuters.
“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,” Will Peck, head of digital assets at WisdomTree, said.
