The price of Bitcoin broke through historic record levels for the first time today, Tuesday, after Donald Trump won the elections, and pro-cryptocurrency lawmakers entered Congress.
By 08:54 am Riyadh time, Bitcoin was trading up 9.76% in 24 hours at $88.55K, according to coinmarketcap data.
Bitcoin has risen 28.9% in the last 7 days, and its market cap has reached $1.75 trillion.
Bitcoin has jumped about 32% since the US election on November 5.
Cryptocurrency markets are banking on promises from President-elect Donald Trump for friendlier crypto rules, the creation of a strategic reserve of Bitcoin in the United States, and increased domestic mining of the token.
In the options market, bets are that Bitcoin will exceed $100,000 by the end of the year.
Bitcoin has doubled in value since the start of the year, helped by strong demand for ETFs and interest rate cuts by the Federal Reserve.
Economic and financial analysts have concluded that the cryptocurrency Bitcoin is heading towards its highest level in history and may break through the $100,000 level, driven by the hot political developments witnessed by the world, most notably the victory of Republican candidate Donald Trump in the US presidential elections.
Trump has previously promised to create a Bitcoin reserve that holds the digital currency collected by the US federal government from seizing assets from financial criminals, and has also pledged to boost the US Bitcoin mining sector, saying he wants all the remaining Bitcoin in the world to be mined in America.
A price rise to $100,000 — a 33% increase from where it is now — is possible, said James Butterfill, head of research at CoinShares, noting that a Trump presidency and a new Republican majority in the Senate would likely make it easier to push through a “relaxed regulatory framework.”
Butterfill said Bitcoin’s price of $100,000 “doesn’t seem unreasonable” given that it is “only 10% of gold’s market share.”
One of Trump’s pledges was to fire Gary Gensler, the chairman of the US Securities and Exchange Commission, who took more than 100 actions against cryptocurrency companies during his tenure at the agency.
