Bitcoin Nears $100K: Political Shifts Propel Crypto Surge

Bitcoin (BTC-USD) is on the brink of reaching the remarkable $100,000 milestone. This development has taken many on Wall Street by surprise but is hardly unexpected for dedicated HODLers, who have long advocated for the potential of cryptocurrencies. As Bitcoin climbs to new heights, it’s sure to spark conversations at this year’s Thanksgiving gatherings, regardless of differing opinions on the ongoing crypto debate.

Surging Crypto Market

Bitcoin isn’t the only digital currency on the rise; the entire crypto market has seen a dramatic increase, jumping from a $2.5 trillion to a $3.5 trillion market cap since Donald Trump’s election victory on November 5. The Trump administration has committed to creating a crypto-friendly environment, vowing to repeal restrictive regulations that have hindered the industry’s growth. Additionally, Trump has pledged to combat central bank digital currencies (CBDCs) and establish a Bitcoin Strategic Reserve. In a move welcomed by crypto enthusiasts, SEC Chairman Gary Gensler has announced his resignation, following the removal of Ohio Senator Sherrod Brown, who was a notable opponent of the crypto sector as Chair of the Senate Banking Committee.

Institutional Support and Political Dynamics

The crypto industry continues to gain momentum, backed by endorsements from influential figures. Crypto advocate and Cantor Fitzgerald CEO Howard Lutnick has been nominated as Commerce Secretary, while there are rumors that Trump Media (DJT) is considering acquiring the crypto trading platform Bakkt (BKKT). Moreover, there has been substantial purchasing from prominent Bitcoin holder MicroStrategy (MSTR) and the introduction of options on Bitcoin exchange-traded funds like the iShares Bitcoin Trust ETF (IBIT). These factors have drawn more institutional and retail investors into the crypto sphere, driving up prices and expanding the range of available ETFs.

Political Influence on Crypto Markets

The intersection of politics and the crypto markets is a captivating and often debated topic. While some investors analyze market trends under various political administrations, the influence of politics on crypto is multifaceted. Despite differing opinions, Bitcoin’s performance has been remarkable, rising by 350% since Joe Biden’s election in 2020 up until the 2024 vote. As Bitcoin’s value continues its upward trajectory, there’s speculation about how high it might climb under Trump’s second term, particularly given the strides Bitcoin made during his first term, even when he wasn’t openly supportive of cryptocurrencies.