Bitcoin on a Record-Breaking Spree: Cryptocurrencies on the Rise

The Bitcoin rally continued its unstoppable winning streak on Thursday as investors bet on a more positive regulatory stance in the USA under President-elect Donald Trump, which could usher in a boom phase for cryptocurrencies. The price of Bitcoin surpassed the $98,000 mark for the first time during European trading and rose by about 4% on the day. Impressively, the Bitcoin price has more than doubled this year and has risen by about 40% since Trump's election as the next US president and the election of several pro-crypto representatives to Congress. Analyst Tony Sycamore from IG Markets pointed out that Bitcoin, despite being in overbought territory, is moving towards the $100,000 mark. During his campaign, Trump expressed a preference for digital assets and promised to make the United States the "crypto capital of the planet" and establish a national Bitcoin reserve. Since the election, more than $4 billion has flowed into US-listed Bitcoin ETFs. This week, options on BlackRock's ETF had a strong debut, with call options—bets on rising prices—being more popular than puts. Stocks in the crypto sector soared along with the Bitcoin price. Shares of Bitcoin miner MARA Holdings rose by almost 14% overnight, and MicroStrategy, a loss-making software company that buys Bitcoin, climbed by 10%, surpassing a market capitalization of $100 billion. Will Peck, head of digital assets at WisdomTree, noted that many hope this administration could bring the regulatory clarity the crypto community has been waiting for. However, it is still too early to judge this conclusively. "We see all this excitement as bullish, not just for Bitcoin or cryptocurrencies in general, but for the entire, currently growing blockchain-powered ecosystem.