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bitcoin (btc) jumped past $99,000 on Thursday, setting a new milestone before giving way slightly. The milestone comes on the heels of major political and market developments that have increased investor confidence in digital assets.
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Rumors from the chairman of the Securities and Exchange Commission (SEC) The departure of Gary Gensleras well as Donald Trump's potential pro-cryptocurrency policies, have fueled enthusiasm in the crypto space.
Inspired by the hope of a possible change in American financial policy, <a target="_blank" href="https://www.bitstamp.net/markets/btc/usd/” target=”_blank” rel=”nofollow”>bitcoin rose to $99,126 from a gloomy start of the session. Investors still believe $100,000 is at stake, especially given the cryptocurrency's roughly 40% surge following Trump's anticipated re-election victory earlier this month.
A pro-crypto administration?
Reports show that the Trump administration is considering creating the first crypto policy paper, which may change the way regulations are adopted. Many think that the SEC will be more open-minded after Gensler leaveswhich has long been a bone of contention among the crypto community.
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On January 20, 2025, I will leave office as <a target="_blank" href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw” rel=”nofollow”>@SECGov
A thread
—Gary Gensler (@GaryGensler) <a target="_blank" href="https://twitter.com/GaryGensler/status/1859658192298574096?ref_src=twsrc%5Etfw” rel=”nofollow”>November 21, 2024
Galaxy Digital CEO Mike Novogratz expressed hope about this change, noting that the energy of the Trump team is very different, that they are pro-crypto, pro-blockchain and see the promise that bitcoin brings. He stated that the government's desire to build a national bitcoin reserve and give top priority to blockchain innovation will help further boost the market.
Corporate moves add fuel
The Financial Times reported that Trump Media & technology Group (DJT) is in talks to acquire Bakkt, a cryptocurrency exchange. This possible collaboration could bring cryptocurrencies into a broader technological framework, making them more accessible and widespread.
These developments add to the broader story of institutional adoption, which was a crucial factor in previous bull cycles. The market reaction shows a growing view that bitcoin is poised to play a larger role in both the public and private sectors under favorable regulations.
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<a target="_blank" href="https://twitter.com/hashtag/bitcoin?src=hash&ref_src=twsrc%5Etfw” rel=”nofollow”>#bitcoin It looks like it was December 2020. Even the RSI is almost identical. If it's true, <a target="_blank" href="https://twitter.com/search?q=%24BTC&src=ctag&ref_src=twsrc%5Etfw” rel=”nofollow”>$btc It will go to $108,000, drop to $99,000, and bounce to $135,000! pic.twitter.com/hsIBWBVGnl
—Ali (@ali_charts) <a target="_blank" href="https://twitter.com/ali_charts/status/1859250153292538180?ref_src=twsrc%5Etfw” rel=”nofollow”>November 20, 2024
Analysts predict new highs
Meanwhile, crypto expert Ali Martinez said that bitcoin's current rise has strong similarities to its rise in late 2020. This analyst's research posits that bitcoin will rise as high as $108,000 before falling to $99,000 and then rising to $135,000.
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Important data including daily active addresses, which exceeded 475,000, and higher social volumes of 380,000 support this projection. These trends mirror the breakout of 2020, when bitcoin more than doubled in just a few weeks.
Following Gensler's resignationbitcoin's direction may be determined by the position its successor takes. A pro-crypto leader can foster acceptance and push bitcoin above $100,000, paving the way for a prolonged bull run. However, changes in regulations and market sentiment will be important factors.
Featured image of DALL-E, TradingView chart
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