Bitcoin hit an all-time high above $106,000 in early Asian trade on Monday as expectations mounted over a favorable regulatory climate under US President-elect Donald Trump. This achievement was reached barely a week after Bitcoin soared past the $100,000 mark for the first time.
As reported by Bloomberg, Bitcoin reached its record high of $106,493, later fluctuating to $104,760. The rally has been linked to news that flows toward policies more friendly to digital assets from President-elect Donald Trump. Critics pointed out that his administration can undo all the regulatory burdens introduced during Joe Biden's presidency.
Among the most debated proposals is the plan to establish a national Bitcoin reserve fund, which investors have found appealing even though its implementation is still ambiguous.
Aya Kantorovich, the co-founder of institutional crypto platform August, stated that there was significant demand for Bitcoin Exchange-Traded funds in response to election outcomes, a fact that saw $12.2 billion in net inflows into ETFs. This trend also points to a sentiment of confidence in an administration that is more favorable to developing cryptocurrencies.
The leading token, Bitcoin, has also increased, helping all other micro-tokens like Ether, XRP, and Dogecoin record increases. Ether-anchored ETFs recorded net subscriptions of $2.8 billion, which indicates institutional acceptance of different types of digital assets.
Tony Sycamore of IG said that the market is now in the "blue sky," and the next target for Bitcoin is expected to touch $110,000. Sycamore explained the current price action due to increased publicity surrounding the potential Bitcoin reserve fund through the Trump administration over the weekend.
Contrary to Biden's restrictive policies on crypto investments, Trump's successive cryptocurrency-rousing policies have boosted the markets. Market participants expect his administration to enact rules enabling market innovation. They believe that his administration will reduce volatility for institutional and retail investors.
This optimism has been evidenced by the recent increased flow of funds into cryptocurrency ETFs, particularly in bitcoin and Ether-related products. According to them, the new administration favors the industry and will keep pumping demand and price growth across the sector.