Bitcoin soared to a record all-time high Thursday after reaching more than $98,000 for the first time amid investor speculation that former U.S. President Donald Trump will win a second term. Through latest figures, Bitcoin had jumped above 3% to $97,930, having touched the previous peak of $98,367 earlier. Still on the uptrend, the currency has registered more than a 130% rise in 2024.
The recent surge in price is largely prognosticated on the perception that a Trump presidency would present favorable conditions for the cryptocurrency market, including supportive regulation and possibly a national bitcoin reserve. Such hopes have kept Bitcoin on an upward trajectory with investors awaiting a golden age for crypto under Trump’s leadership. The move was highly pronounced following a rate hike and increasing open interest on futures markets during Asia trading hours as premiums in the spot market drenched, according to Crypto Quant.
The price of Bitcoin continues to surge higher, with short liquidation accounting for over $88 million in positions closed in the last 24 hours. This rate has helped Bitcoin continue its strong trajectory, showing the interest and speculative activity that exists in this market.
Bitcoin is in a breakout phase after a long period of consolidation, according to analyst Rob Ginsberg at Wolfe Research. According to him, Bitcoin’s price can either enter into a consolidation period or break through the top as investors scramble to catch up on the updraft. Still, some analysts believe that this key psychological threshold of $100,000 is close enough and may happen within days.
Other potential macroeconomic factors for his second term might include larger budget deficits, increased inflation, and a changing role for the dollar that could support Bitcoin’s price. These macroeconomic factors may take the appeal for bitcoin as a hedge against traditional financial risks to even greater heights.
In the related stocks, while some of those companies such as MicroStrategy and Coinbase saw their values boom significantly, the market was keen on how Bitcoin was heading toward $100,000 as investors and analysts throughout continued to stare at it.
