Bitcoin surged to a record high on Monday, fueled by President-elect Donald Trump’s pro-digital asset stance and anticipation surrounding MicroStrategy Inc.’s addition to the Nasdaq 100 Index. The software company, a significant Bitcoin accumulator, saw its inclusion in the prestigious tech stock gauge as a bullish signal for the cryptocurrency market.
The leading cryptocurrency briefly climbed over 4.8% to an unprecedented $107,791, surpassing its previous December 5th peak. This surge coincided with MicroStrategy’s announcement of an additional $1.5 billion Bitcoin purchase in the preceding week, further bolstering market sentiment.
Trump’s emerging regulatory framework, seen as favorable to digital assets, stands in contrast to the stricter policies of the outgoing Biden administration. The President-elect has also advocated for a national Bitcoin reserve, although the practicality of such a proposal remains debated. This shift in regulatory direction has injected optimism into the crypto market.
Aya Kantorovich, co-founder of institutional crypto platform August, noted on Bloomberg Television that many investors anticipate a more supportive environment under the new administration. This positive outlook is evident in the rising demand for digital asset ETFs, she added.
MicroStrategy’s upcoming inclusion in the Nasdaq 100 Index, announced by Nasdaq Global Indexes on Friday, is viewed as a significant milestone for Bitcoin’s institutional acceptance. The company’s aggressive Bitcoin acquisition strategy, financed by raising billions of dollars, has effectively transformed it into a leveraged bet on the cryptocurrency.
“MicroStrategy’s Nasdaq inclusion could trigger purchases by index funds, potentially enabling the company to raise more capital for further Bitcoin acquisitions,” commented Sean McNulty, director of trading at liquidity provider Arbelos Markets. This marked MicroStrategy’s sixth consecutive Monday announcing Bitcoin purchases, with its holdings now exceeding $45 billion, solidifying its position as a major corporate Bitcoin holder.
The decision to include MicroStrategy in the Nasdaq 100 also represents a significant victory for its unconventional founder, Michael Saylor. His defiance of traditional Wall Street norms has propelled a remarkable 500% surge in the company’s stock price this year, earning him acclaim among Bitcoin enthusiasts.
As of Monday afternoon in New York, Bitcoin traded around $105,850, more than doubling in value year-to-date. Other cryptocurrencies, including Ether, the second-largest by market capitalization, also experienced upward momentum. Bitcoin’s seven-week winning streak, its longest since 2021, concluded on Sunday. However, IG Australia Pty Market Analyst Tony Sycamore cautioned that the recent moderation in price gains might signal an impending pullback.
US Bitcoin ETFs have seen a substantial $12.2 billion in net inflows since Trump’s election victory on November 5th. Similar Ether ETFs have attracted $2.8 billion over the same period, highlighting the growing investor interest in digital assets.
In conclusion, the confluence of President-elect Trump’s positive stance on digital assets and MicroStrategy’s Nasdaq 100 inclusion has propelled Bitcoin to new all-time highs. This reflects a broader trend of growing institutional acceptance and investor confidence in the cryptocurrency market. However, analysts suggest that investors should remain vigilant for potential price corrections following the recent rapid gains.
