Bitcoin surged to a record high on Monday, crossing the $106,000 mark for the first time, driven by optimism surrounding President-elect Donald Trump’s pro-cryptocurrency stance. The digital asset climbed more than 3% in early Asian trading, reaching an unprecedented $106,493, surpassing its previous peak on December 5. The rally has extended Bitcoin’s winning streak, marking its longest run since 2021.
Trump’s election has sparked widespread expectations for a more favourable regulatory environment for digital assets, reversing the crackdown imposed by the Biden administration. He has also supported the creation of a strategic Bitcoin reserve fund, a move that has generated both excitement and scepticism.
Aya Kantorovich, co-founder of institutional crypto platform August, noted that many are banking on a friendlier regulatory landscape under Trump’s leadership, which has fueled increased demand for Bitcoin-related exchange-traded funds (ETFs).
The positive sentiment surrounding Bitcoin has also extended to other cryptocurrencies, including Ether, XRP, and Dogecoin, which have all posted gains.
On Friday, Nasdaq Global Indexes announced that MicroStrategy, a major Bitcoin investor, will be added to the Nasdaq 100 Index, underscoring the growing mainstream acceptance of digital assets. MicroStrategy has raised capital to invest billions into Bitcoin, becoming a key player in the crypto market.
Despite the recent gains, analysts are cautioning that a pullback may be on the horizon. IG Australia’s Tony Sycamore pointed out that the pace of Bitcoin’s gains has slowed recently, suggesting a potential correction could be coming. As of Monday morning, Bitcoin was trading at $106,215 in Singapore.
The ongoing surge in Bitcoin prices reflects the market's optimism about Trump’s impact on the crypto space, with many analysts predicting that $110,000 could be the next milestone for the leading cryptocurrency.