Bitcoin soared to a new record on Tuesday, briefly surpassing $107,800, as growing investor optimism surrounding President-elect Donald Trump's pro-crypto stance continues to fuel the rally. The world's largest cryptocurrency is now up nearly 60% since the November election, hitting a high of $107,778 before settling around $107,017, according to CoinDesk data.
"Bitcoin's $100K crossing at this time is 100% tied to the strength of policies, and the pro-crypto cabinet and leadership appointees arising from the victory of President Trump," Eric Schiffer, chairman of venture-capital firm Patriarch Organization, said in a statement. Trump's supportive rhetoric, combined with strategic appointments favoring the cryptocurrency sector, has invigorated bullish sentiment in the market.
In particular, Trump's nomination of crypto advocate Paul Atkins to head the Securities and Exchange Commission (SEC) has been seen as a pivotal move. Atkins is expected to replace current SEC chair Gary Gensler, who has taken a stringent stance on cryptocurrency regulation during his tenure. Trump's comments about creating a U.S. Bitcoin treasury and supporting digital assets have further buoyed investor confidence.
"We have a new crypto and Bitcoin-friendly administration, with discussions underway for a U.S. Bitcoin treasury," said James Lavish, Managing Partner at the Bitcoin Opportunity Fund. Lavish also pointed to new Financial Accounting Standards Board (FASB) rules that now allow corporations to hold Bitcoin on their balance sheets without penalties, a development he described as "further legitimizing Bitcoin as a corporate asset."
Bitcoin's meteoric rise has pushed its market capitalization above $2.12 trillion, with daily trading volumes surging 24% to hover around $80 billion. Analysts say the asset remains in "price discovery mode" after its breakout in November, with midterm targets ranging from $120,000 to as high as $200,000 by the end of 2025.
Adding to the momentum, MicroStrategy-the largest corporate holder of Bitcoin-is set to join the Nasdaq 100 on December 23, alongside Palantir Technologies and Axon. The move is widely regarded as a symbolic win for the crypto sector, further integrating Bitcoin into mainstream financial markets.
The rally comes amid a wave of institutional interest. U.S.-based Bitcoin ETFs have emerged as major drivers of demand, particularly BlackRock's iShares Bitcoin Trust (IBIT) and Fidelity's Wise Origin Bitcoin Fund (FBTC). On Monday alone, U.S. Bitcoin ETFs saw a combined net cash inflow of $636.85 million. BlackRock's IBIT led the charge with $418 million, while Fidelity's FBTC added $116 million, signaling robust institutional appetite.
According to market data, more than 40,000 Bitcoin were withdrawn from centralized exchanges in the past week, reflecting the ongoing accumulation by whale investors. This trend has pushed Bitcoin's exchange supply to its lowest level since 2018, with only 2.24 million coins remaining on trading platforms.
Amid the surge, crypto analysts are eyeing key events that could influence Bitcoin's trajectory in the coming days. The Federal Reserve's upcoming policy update on December 18 is expected to dominate headlines, as analysts anticipate another 25 basis-point interest rate cut to 4.75%. Lower interest rates often benefit risk assets like Bitcoin, as investors seek higher returns in alternative markets.
Global central bank decisions will also play a role. The Bank of Japan and the Bank of England are expected to maintain their respective interest rates later this week, providing stability in a market already navigating volatility.
