By Hannah Lang and Laura Matthews
(Reuters) – Broke the $90,000 level on Wednesday to a record high in a rally that showed no signs of easing on expectations that Donald Trump as U.S. president will be a boon for cryptocurrencies.
The world’s largest cryptocurrency has become one of the most notable gainers in the week since the election, hitting a record $93,480 on Wednesday before paring gains.
The stock was last down slightly at $88,185, but has risen 32% since the Nov. 5 election.
Smaller peer ether has also risen 37% since Election Day, while dogecoin, an alternative, volatile token promoted by billionaire Trump ally Elon Musk, rose more than 150%.
“What you’ve seen since the election is the market hoping or realizing what this could mean for bitcoin in the medium to long term — a pro-bitcoin government, a Senate, and potential legislation that would not only give American citizens the right to gives self-determination. bitcoin, but bitcoin may become a strategic reserve for the US Treasury,” said Damon Polistina, head of research at Eaglebrook.
Regulatory uncertainty is a major cloud hanging over the industry and a headwind for advisors assigning their clients to bitcoin, he said.
Trump embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet” and build a national stockpile of bitcoin.
It’s unclear how and when that could happen, but the possibility set off a speculative wave of crypto mining and stock trading.
Zach Pandl, head of research at Grayscale Investments, said the “election results will provide large, regulated companies such as banks, custodians and exchanges the opportunity to engage with public blockchain technology in a way they have not done in the past.”
Software (ETR:) company and bitcoin investor MicroStrategy announced that it spent approximately $2 billion on bitcoin between October 31 and November 10. Shares hit a record high on Tuesday.
Crypto investors see an end to increased scrutiny from the Securities and Exchange Commission under Trump. Trump and his sons announced a new crypto company, World Liberty Financial, in September.
“Many people believe we will inevitably get to Bitcoin at $100,000,” says JJ Kinahan, CEO of IG North America and president of his tasty trading brokerage.
“I expect Bitcoin will continue to build momentum, at least until after the inauguration, when we find out what the real plans are for getting there.”
Others advised investors not to get caught up in the crypto frenzy.
“Now that bitcoin has reached $90,000 and set a new all-time high, investors should be cautious about the potential volatility ahead,” said Georgi Koreli, CEO of Hinkal, a blockchain-based private transaction protocol. “This doesn’t mean we won’t see $95,000 or even $100,000 soon, but rather that BTC could pause or slide back to regain its strength.”
