Key Takeaways:
Bitcoin (BTC), the flagship cryptocurrency, is nearing the $90,000 mark for the first time in its decade-long history after breaking past the $80,000 level.
According to Coin Metrics data, Bitcoin’s price had risen by 12% earlier in the day to change hands at $89,100 on various exchanges. On Tuesday, the apex cryptocurrency recorded a new all-time high of $89,623. This surge has prompted many investors to believe that BTC is on its way to the highly-coveted $100,000 valuation.
Experts Anticipate Bitcoin To Reach $100,000 By The End of The Year
Speaking to CNBC, Mike Colonnsese, an analyst at investment banking firm H.C. Wainright, said that Bitcoin is currently in a “price discovery” mode after breaking through all-time highs last week after Donald Trump was officially declared the winner of the U.S. presidential elections.
He also noted that strong positive market-wide sentiment for Bitcoin is likely to persist through the remainder of the year and the world’s largest cryptocurrency’s price could potentially reach six figures by the end of the year.
The digital asset has gained more than 30% since election day, with investors largely expecting Washington to adopt a more friendly regulatory approach towards cryptocurrencies under the Trump administration.
During his first term in the White House, Trump called Bitcoin a scam and complained that the digital currency was competing against the U.S. dollar. However, the Republican nominee changed his course during the re-election campaign to cast himself as the most crypto-friendly presidential candidate.
President Trump Is Key To Crypto’s Future
Among other policy promises, the President-elect has pledged to turn the U.S. into the crypto capital of the world, scaling up Bitcoin mining operations in the country, and firing Securities and Exchange Commission (SEC) chairman Gary Gensler, who has been leading the Biden administration’s increased oversight of the sector.
Crypto investors are hoping for Trump to make the regulatory environment more supportive and friendlier towards firms involved with the crypto market, which has long been lacking a clear set of operational rules.
While the United States has been supportive of the industry, the SEC is battling to bring crypto assets under the securities regulations, which is being viewed as a conflict of interest. Despite the regulatory hiccups, a large number of cryptocurrency firms are operating in the risky grey area.
However, there is optimism among market participants about changing winds. In an interview with CNBC, Matt Hougan, chief investment officer of crypto asset management firm Bitwise, said that the sector is now expecting a positive regulatory environment in the US, and the existing bullish sentiment is only going to push the market much higher.
Bitcoin’s tremendous growth has also been reflected across the market, with altcoins such as Ether (ETH), Polygon (POL), Ripple (XRP), and Dogecoin (DOGE) recording massive gains. Among these, DOGE has been one of the biggest winners, witnessing its price grow more than 30% following Trump’s victory. The popular meme coin’s meteoric rise can be attributed to its connection with Elon Musk, who has been a vocal supporter of the president-elect.
In the stock market, the shares of US-based cryptocurrency exchange Coinbase (COIN) and business intelligence firm MicroStrategy (MSTR) gained about 3% and 5%, respectively, in extended trading on Monday.
MicroStrategy Acquires 27,200 BTC Worth An Estimated $2.03 Billion
Capitalizing on Bitcoin’s latest surge, MicroStrategy has acquired another 27,200 BTC, worth roughly $2.03 billion, for its treasury. The world’s largest corporate holder of Bitcoin purchased the coins in cash at an average estimated price of $74,463, including fees and expenses.
According to a press release from the company, the Bitcoin purchases were made between October 31 and November 10, 2024, using proceeds from the issuance and sale of MSTR shares.
MicroStrategy and its subsidiary MacroStrategy hold 279,420 BTC under their respective balance sheets, acquired at an approximate purchase price of $11.9 billion. The average cost of each Bitcoin owned by the company is $42,692, including fees and various expenses.
The latest purchase comes after the company reported quarterly earnings of $116 million at the end of last month. MicroStrategy has also announced plans to raise $42 billion from shareholders to acquire more Bitcoin over the next three years.
Last week, JPMorgan analysts predicted that Donald Trump’s landslide victory in the election combined with MicroStrategy’s latest Bitcoin acquisition plan could bolster the apex cryptocurrency’s valuation.
The leading cryptocurrency has had a volatile few years, which began with a climb to a record high of $69,000 in late 2021, followed by a heavy crash in 2022 that saw its price plunge to less than $16,000. Bitcoin then recorded an all-time high in March after surging more than 300% since November 2022.
At the time of writing, Bitcoin (BTC) is trading at $87,842 – up 6.63% over the last 24 hours.
Read More: X Empire Hits Record All-Time High: Can It Sustain the Current Momentum?
