Bitcoin Breaks $100,000 Barrier! Trump Effect and Institutional Investment Fuel Crypto Market SurgeOn December 5th, Bitcoin's price surged past the $100,000 mark, experiencing a 4% intraday increase and setting a new all-time high. This remarkable jump is even more striking considering Bitcoin's astonishing 138% year-to-date gain
Bitcoin Breaks $100,000 Barrier! Trump Effect and Institutional Investment Fuel Crypto Market Surge
On December 5th, Bitcoin's price surged past the $100,000 mark, experiencing a 4% intraday increase and setting a new all-time high. This remarkable jump is even more striking considering Bitcoin's astonishing 138% year-to-date gain. Just one month prior, on November 4th, Bitcoin hovered around $67,400 amidst the uncertainty of a closely contested US election. However, the early morning announcement on November 6th of Republican presidential candidate and former President Donald Trump's victory in the 2024 election appears to have acted as a catalyst, igniting a Bitcoin price rally that saw it gain nearly 50% in just one month, sparking unprecedented market enthusiasm.
Bitcoin's price chart for the year vividly illustrates this incredible surge. From the beginning of the year, the price curve has steadily climbed, ultimately breaking the psychological barrier of $100,000, exceeding the expectations of many in both speed and magnitude. (Source: Screenshot from cryptocurrency trading website)
As Bitcoin neared the $100,000 mark, Mark Palmer, a senior analyst at New York investment bank The Benchmark Company, predicted in a media interview that Bitcoin could skyrocket to $225,000 by the end of 2026. Palmer attributed this anticipated rally primarily to institutional investors, noting that "their interest in Bitcoin will continue to increase over the next few years." He drew a parallel to gold: "At the beginning of the 21st century, when investors and pension funds began buying gold ETFs en masse, the price of gold began to rise sharply. This trend opened the door for gold to become a mainstream investment; since the beginning of the century, the price of gold has increased by 845%."
Palmer further explained: "The reality is that many pension funds are underfunded. Bitcoin, as an 'uncorrelated asset,' has enormous potential upside. Therefore, including some Bitcoin in a portfolio is a sensible risk diversification strategy."
Beyond institutional investment, Trump's election victory has also significantly contributed to Bitcoin's price surge. During his campaign, Trump repeatedly expressed his support for "Bitcoin" and "cryptocurrency," praising their innovative spirit and decentralized nature as aligning with core American values. He emphasized that if the US didn't embrace cryptocurrency first, other nations would seize the opportunity and dominate the field. He therefore planned to support cryptocurrency through policy, aiming to establish US leadership in the global Bitcoin and blockchain technology sector.
This led investors to dub Trump the "crypto president," with traders anticipating that his administration would ease cryptocurrency regulations and potentially even establish a national Bitcoin reserve. There were even reports that Trump was considering appointing former Commodity Futures Trading Commission (CFTC) Chairman Chris Giacarlo as a "crypto czar" to develop and implement cryptocurrency policy. Notably, Giacarlo served as CFTC chairman during Trump's first term (January 20, 2017 January 20, 2021). During his tenure, the CFTC approved the listing of Bitcoin futures contracts for trading in the US and approved the license application of New York startup LedgerX's Bitcoin options trading platform, making it the world's first institution authorized to clear and settle digital currency derivative contracts.
Jeffrey Ding, chief analyst at HashKey Group, echoed similar sentiments. He pointed out that several US-listed companies plan to implement Bitcoin corporate financial strategies, joining the ranks of Bitcoin hoarders, which will positively impact Bitcoin's price. Ding also highlighted Trump's continued appointment of crypto-friendly officials, creating positive market expectations. Should Trump fulfill his campaign promises, Bitcoin could receive significant policy support, including inclusion in government reserves, the establishment of a presidential advisory council, and the replacement of the Securities and Exchange Commission (SEC) chair. These measures would create a more favorable market environment for Bitcoin, further broadening its upside potential.
In conclusion, Bitcoin's breakthrough of the $100,000 mark is the result of multiple factors. Continued optimism from institutional investors and market expectations of favorable policies under a Trump administration have jointly propelled this Bitcoin price surge. While the future trajectory of Bitcoin's price remains uncertain, the current market enthusiasm undoubtedly adds further intrigue to the future development of this digital asset. (Times Finance, Lan Liqi, compiled from Jiemian News, Cailian Press, Economic Observer, Wall Street News)
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