Bitcoin (BTC-USD) surged past $98,800 on Thursday, setting a new all-time high following the announcement that Securities and Exchange Commission (SEC) Chair Gary Gensler will step down on January 20, coinciding with Donald Trump’s scheduled return to the White House.
The cryptocurrency initially crossed the $98,000 mark during early trading before settling slightly lower, as optimism grew around pro-crypto policies anticipated under the incoming Trump administration. Bitcoin’s meteoric rise of approximately 40% since Trump’s election victory earlier this month reflects increasing investor confidence in favorable regulatory changes.
Trump Administration Fuels Crypto Optimism
Reports that President-elect Trump’s transition team is considering a dedicated crypto policy role have further buoyed Bitcoin’s price. Many investors are targeting the psychologically significant $100,000 milestone as they speculate on potential initiatives such as a national Bitcoin stockpile and regulatory reforms to support digital assets.
Trump’s victory has rekindled hopes for a more crypto-friendly approach in Washington, with industry insiders pointing to the likely appointment of a pro-crypto SEC Chair to replace Gensler.
Market Drivers: Institutional Interest and Strategic Acquisitions
Bitcoin’s rally also coincides with a report from the Financial Times suggesting that Trump Media & Technology Group (DJT) is in advanced talks to acquire crypto trading company Bakkt (BKKT). Such a tie-up could reinforce crypto sector initiatives under Trump’s leadership.
At the same time, institutional interest in Bitcoin remains robust. Spot Bitcoin ETFs have seen significant inflows, with BlackRock’s iShares Bitcoin Trust (IBIT) assets surging by $13 billion in the days following Trump’s election victory. The fund now manages over $40 billion in assets, just 10 months after its launch, according to Yahoo Finance.
Additionally, Nasdaq’s launch of options tied to the iShares Bitcoin Trust earlier this week has further amplified trading activity, solidifying Bitcoin’s position as a key asset in financial markets.
Looking Ahead
As Bitcoin approaches the $100,000 threshold, the combination of political shifts, institutional adoption, and increased mainstream attention could set the stage for continued growth. Investors are closely watching for announcements from Trump’s team regarding crypto-specific policies and appointments, which could have lasting impacts on the digital asset landscape.
Stay tuned for more updates as Bitcoin’s historic rally continues to unfold.
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