Bitcoin (BTC) Surpasses $106K, Soars Over 50% Since Trump’s Election Victory

Bitcoin (BTC), the largest cryptocurrency by market capitalization, has reached a new all-time high, surpassing $106,000. The milestone extends a rally that has driven its value up by more than 50% since Donald Trump’s victory on November 5. Data from CoinGecko confirmed the cryptocurrency peaked at $106,352.

Shaping a Crypto-Friendly Future

The incoming Trump administration is widely perceived as more supportive of cryptocurrencies than the Biden government. Last week, the president-elect reiterated plans to explore the creation of a national digital currency reserve modeled after the U.S. Strategic Petroleum Reserve.

In early November, Trump appointed Silicon Valley entrepreneur David Sacks as his lead on artificial intelligence (AI) and cryptocurrency initiatives. Sacks, a former PayPal executive and close associate of Trump advisor Elon Musk, is expected to play a key role in shaping the administration’s tech and crypto policies.

Trump has also selected Washington attorney and crypto advocate Paul Atkins to head the Securities and Exchange Commission (SEC). Atkins’ nomination comes as current SEC Chair Gary Gensler announced he will step down on January 20, Trump’s inauguration day. In a post on X, Gensler thanked President Biden for the opportunity to serve and stated that the SEC had fulfilled its mission to enforce the law impartially.

Trump had promised to dismiss Gensler immediately upon taking office, citing dissatisfaction with the SEC’s legal actions against cryptocurrency companies, which sparked heated debates.

Investor Optimism

Investor sentiment remains optimistic, with many predicting Bitcoin could hit $120,000 by year-end and exceed $150,000 by mid-2025. Peter McGuire of trading platform XM.com told the BBC that “fear of missing out” (FOMO) drives strong demand, especially after spot Bitcoin ETFs recorded net inflows exceeding $50 billion within a year.

Meanwhile, on-chain metrics indicate significant growth in Bitcoin’s network activity. Glassnode data shows the Bitcoin network’s hashrate has skyrocketed from 128 EH/s to over 804 EH/s, with 37% of this growth occurring in 2024 alone. Miners have collectively earned $71.49 billion in revenue, reflecting the cryptocurrency’s robust security and attractive economic incentives.