By Elsa Ohlen
Bitcoin has hit yet another record high. The world's largest cryptocurrency managed to top $107,000 early Tuesday. Thank President-elect Donald Trump and his crypto friendly rhetoric for fueling the rally.
Bitcoin is up 2.3% over the last 24 hours to last trade at $107,017, according to CoinDesk data. The price of the world's largest cryptocurrency hit an all-time high of $107,778 on Monday afternoon.
"Bitcoin's $100K crossing at this time is 100% tied to the strength of policies, and the pro-crypto cabinet and leadership appointees arising from the victory of President Trump," said Eric Schiffer of the Patriarch Organization, a venture-capital firm.
Bitcoin is up almost 60% since the election. The crypto rally can largely be explained by Donald Trump's incoming administration's support for cryptocurrencies, including the President-elect's promises to create a strategic Bitcoin reserve.
Trump has also nominated crypto advocate Paul Atkins to lead the Securities and Exchange Commission, replacing current chair Gary Gensler who has been attempting to tighten regulation of digital assets.
"We have a new crypto and Bitcoin friendly administration, with discussions underway for a U.S. Bitcoin treasury, and also FASB [Financial Accounting Standards Board] rules now allowing companies to hold bitcoin on their balance sheet without penalty," James Lavish, Managing Partner at Bitcoin Opportunity Fund, noted. "This is further legitimizing Bitcoin as a corporate asset."
On top of this, MicroStrategy, the largest holder of Bitcoin, will be added to the Nasdaq 100 on Dec. 23, alongside Palantir Technologies and Axon.
That has led to crypto bulls to eye new highs, with analysts predicting between $150,000 and $200,000 by the end of 2025.
Write to Elsa Ohlen at elsa.ohlen@barrons.com
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December 17, 2024 06:37 ET (11:37 GMT)
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