Bitcoin hits record high of $106,493 amid Trump's pro-crypto stance
What's the story
Bitcoin has hit an all-time high, trading at $106,493 today. The surge can largely be attributed to the supportive stance on cryptocurrencies by US President-elect Donald Trump, and his plans to establish US dominance in the cryptocurrency sector. Bitcoin's rise has also positively impacted the broader crypto market, with smaller tokens like Ether and Dogecoin also gaining.
Policy impact
Trump's pro-crypto policies boost Bitcoin ETFs
Trump's strategy involves establishing a friendly regulatory environment for digital assets, undoing the crackdown from President Joe Biden's administration. He has also floated the concept of a strategic national Bitcoin stockpile, though its viability is questionable. Aya Kantorovich, co-founder of institutional cryptocurrency platform August, said on Bloomberg Television that many are "basing their expectation on a much more favorable administration," which is evident from the surge in demand for exchange-traded funds (ETFs) investing in digital assets.
Investment surge
Bitcoin ETFs attract billions
Since Trump's election victory on November 5, US ETFs directly investing in Bitcoin have witnessed net inflows of $12.2 billion. Similar products for Ether have lured $2.8 billion in the same period. Last week, Nasdaq Global Indexes announced that Bitcoin's biggest investor MicroStrategy Inc. will be joining the Nasdaq 100 Index. The inclusion is likely to enhance MicroStrategy's capacity to raise equity for more Bitcoin purchases.
Market trends
Bitcoin's winning streak and potential pullback
Notably, Bitcoin has been on a seven-week winning streak, its longest since 2021. However, IG Australia Market Analyst Tony Sycamore warned that "a pullback may be coming" as the pace of gains has slowed down recently.