Bitcoin hits fresh record, races toward $100,000 as rally continues
Bitcoin reached unprecedented heights on Thursday, breaking through $99,000 for the first time as market optimism around a potential second Trump presidency fueled the cryptocurrency's meteoric rise.
The world's leading cryptocurrency surged over 4% to $98,273.50, after touching an all-time high of $99,046.94 earlier in the day, according to data from Coin Metrics. The digital asset has skyrocketed approximately 130% since the start of 2024.
Market analysts attribute the latest rally to growing expectations that a Trump return to the White House could usher in crypto-friendly policies, including supportive industry regulations and the possibility of establishing a national bitcoin reserve.
The price surge triggered substantial market activity, with over $100 million in short positions liquidated within 24 hours, based on CoinGlass data. The upward momentum was further amplified by increased funding rates and futures market interest during Asian trading hours.
While cryptocurrency stocks faced some profit-taking amid a broader technology sector rotation - with Coinbase dropping 7.7% and MicroStrategy falling 16.2% - mining company Mara Holdings bucked the trend with a 6.9% gain.
Rob Ginsberg of Wolfe Research noted the unusual nature of the current rally: "Looking back at previous moves of this magnitude, BTC has historically either gone into a consolidation period, or ignored the overbought condition as investors pile in." He suggests the next major test will be the $100,000 threshold, which could be reached within weeks or even days.
Market observers also point to broader economic implications of a potential Trump presidency, including increased budget deficits and possible shifts in the dollar's international status, as additional factors supporting bitcoin's upward trajectory.
The cryptocurrency continues its remarkable ascent as investors eagerly watch whether it can breach the psychologically important $100,000 barrier in the coming days.