Bitcoin reached an all-time high, surging by over 4.8% to $107,791 on Monday, fueled by President-elect Donald Trump’s favorable stance on digital assets and MicroStrategy Inc.’s inclusion in the Nasdaq 100 Index. The rally builds on a seven-week winning streak, the longest since 2021, signaling renewed interest and institutional acceptance of the cryptocurrency.
MicroStrategy, a company renowned for its aggressive Bitcoin accumulation strategy, announced a $1.5 billion purchase of the cryptocurrency last week. Its addition to the Nasdaq 100 Index marks a significant milestone, enabling index funds to invest in the company’s shares, potentially providing more capital to acquire Bitcoin.
Market analysts attribute part of Bitcoin’s rise to Trump’s proposed regulatory framework, which aims to reverse President Joe Biden’s stringent policies on digital assets. Trump’s advocacy for a strategic national Bitcoin reserve has also spurred optimism among investors, although its practicality remains debated.
Smaller cryptocurrencies like Ether also followed Bitcoin’s upward trajectory, while exchange-traded funds (ETFs) tied to Bitcoin have attracted $12.2 billion in net inflows since Trump’s election victory. Despite the positive momentum, some analysts, such as Tony Sycamore from IG Australia Pty, caution that the market could face a short-term pullback following the extended rally.
With Bitcoin more than doubling in value this year, its growing mainstream acceptance is underscored by MicroStrategy’s transformation into a major corporate Bitcoin holder and the company’s 500% stock surge under founder Michael Saylor’s leadership. The digital asset market continues to thrive, bolstered by regulatory optimism and institutional support.
