Bitcoin (BTC) renewed its price high amid continued support for the crypto market by US President-elect Donald Trump. The rise of the leading cryptocurrency is accompanied by investor optimism based on expectations of a favorable regulatory environment that may be created by the new administration. As well as the announcement of the inclusion of the largest corporate holder of bitcoins, MicroStrategy, in the index NASDAQ 100, which includes the 100 largest non-financial companies in the United States. Against this background, experts expect Bitcoin to continue to grow to the level of $120 thousand, writes RBC Crypto.
On the night of December 16, Bitcoin set a new price maximum at $106,648 on the Binance exchange. The previous peak was reached on December 5 at around $104 thousand. Since the beginning of the year, Bitcoin has grown by almost 150%, overtaking most cryptocurrencies from the list of the 100 largest by capitalization.
Bitcoin’s capitalization exceeded $2.08 trillion on December 16, making it the seventh largest traded asset on exchanges after gold and shares of the five largest technology companies – Apple, NVIDIA, Microsoft, Amazon and Alphabet (Google). according to Companiesmarketcap service.
MicroStrategy
December 13, developers of the NASDAQ 100 index of the largest non-financial companies statedthat MicroStrategy will be added to the updated list on December 23, which, according to experts, could attract additional capital for the purchase of Bitcoin.
MicroStrategy is the most prominent supporter and largest public holder of Bitcoin. In 2020, the company, then led by Michael Saylor, became one of the first public organizations to announce the purchase of a major cryptocurrency on its balance sheet. As of December 8, MicroStrategy had 423,650 BTC on its balance sheet, on which the company spent $25.6 billion with an average purchase price of $60,324 per 1 BTC.
A feature of MicroStrategy’s bitcoin accumulation strategy is the attraction of borrowed funds to purchase coins. The company periodically issues debt securities with maturities of several years in order to increase its Bitcoin reserves.
Donald Trump
In 2024, there was a well-established opinion in the crypto market that the administration of US President-elect Donald Trump would influence the blockchain sector through more friendly regulation of the industry.
The Trump administration is expected to “reset” cryptocurrency policy. In particular, this concerns the approach to the crypto market by the US Securities and Exchange Commission (SEC), which has strengthened control over the cryptocurrency market under current President Joe Biden.
Trump also announced his intention to create a “strategic reserve of Bitcoin,” emphasizing the importance of cryptocurrencies to the country’s economic competitiveness, which he announced at the Bitcoin 2024 cryptocurrency conference in Nashville in late July.
Although many doubt the implementation of these plans, Bloomberg with reference to experts, wrote that this optimism has a positive effect on the demand for exchange-traded funds (ETFs) based on Bitcoin.
Since Bitcoin ETFs began trading in January 2024, U.S. funds have raised nearly $115 billion, according to Sosovalue as of Dec. 16. Since Trump’s election in early November, ETF issuers’ AUM has grown by $45 billion. And Ethereum-based ETF issuers’ AUM has roughly doubled over the same period, to $13.8 billion.
Growth Expectations
Despite the growth that has occurred, analysts expect a further price rally due to a possible continued influx of capital from companies and organizations.
May noted that this is due to the fact that institutions and wealthy investors have not yet fully embraced the idea of allocating 1-3% of their portfolio to Bitcoin and cryptocurrency in general.
The same point of view was expressed in a new report from the BlackRock Investment Institute entitled “Bitcoin’s Share of Portfolios.” In the report, analysts said that Bitcoin, long shunned by large investors, should now account for 1% to 2% of traditional stock and bond investment portfolios.
IN report at the end of November, company analysts called Bitcoin a new asset with “unique demand factors”, as well as an alternative monetary instrument with limited supply.
Stay informed! Subscribe to World Stock Market in Telegram.
Source: Cryptocurrency
I am an experienced journalist and writer with a career in the news industry. My focus is on covering Top News stories for World Stock Market, where I provide comprehensive analysis and commentary on markets around the world. I have expertise in writing both long-form articles and shorter pieces that deliver timely, relevant updates to readers.
