LONDON: Bitcoin touched a fresh record high on Friday, with its sights set firmly on the $100,000 barrier, in a stellar rally for the cryptocurrency sparked by expectations of a friendly regulatory environment under a Donald Trump administration.

It has more than doubled in value this year and is up about 45pc since Trump’s sweeping election victory on Nov 5, which has also seen a slew of pro-crypto lawmakers being elected to Congress.

The cryptocurrency’s gains though were more measured on Friday. After touching a fresh record high above $99,000, bitcoin pulled back a touch to trade up just 0.5 per cent on the day, around $98,500.

Still, the momentum for further gains appeared strong with bitcoin poised for a third straight week of plus 10pc gains. It is also on track for its best monthly performance since February.

Its surge has made bitcoin one of the stand-out winners of so-called “Trump trades” — assets that are seen as winning or losing from Trump’s policies.

The cryptocurrency also appears on the cusp of mainstream acceptance since its creation 16 years ago.

“The longer it survives it is taken more seriously, that’s just the reality of things,” said Shane Oliver, chief economist and head of investment strategy at AMP Sydney.

“As an economist and investor I find it very hard to value it… it’s anyone’s guess. But it does have a momentum aspect to it and at the moment the momentum is up.” Indeed, bitcoin is up around 130pc this year.

Trump embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet” and to accumulate a national stockpile of bitcoin.

More than $4 billion has streamed into US-listed bitcoin exchange-traded funds since the election.

Published in Dawn, November 23rd, 2024