Bitcoin has soared to a new all-time high, continuing a rally that has seen its value increase by over 50% since Donald Trump’s victory in the November 5 election.
The world’s largest cryptocurrency briefly surpassed $106,000 (£83,890) before settling at around $105,000 during Asian trading on Monday.
The incoming Trump administration is widely regarded as more supportive of cryptocurrencies compared to the outgoing Biden administration.
Last Thursday, the president-elect reaffirmed that he is considering establishing a national reserve of digital currency, akin to the U.S. Strategic Petroleum Reserve.
“The Bitcoin rally since the election has been parabolic and the FOMO – or fear of missing out – rally is gathering momentum,” Peter McGuire from trading platform XM.com told the BBC.
“Many investors believe $120,000 is achievable by the end of the year and then in 2025 there’s talk of greater than $150,000 by mid-year”.
Earlier this month, Trump appointed Silicon Valley entrepreneur David Sacks as his artificial intelligence (AI) and cryptocurrency advisor.
Sacks, a former PayPal executive, is a close associate of Trump adviser and major donor Elon Musk.
Trump also announced plans to nominate pro-cryptocurrency Washington attorney Paul Atkins as the new head of the Securities and Exchange Commission (SEC), the Wall Street regulator.
Last month, current SEC chairman Gary Gensler announced he would step down from his position on the day of Trump’s inauguration, January 20 next year.
“I thank President Biden for entrusting me with this incredible responsibility. The SEC has met our mission and enforced the law without fear or favor,” Mr Gensler wrote on the social media platform X.
Trump had previously revealed plans to sack Mr Gensler on “day one” of his new administration after the SEC chairman took legal action against cryptocurrency firms, sparking controversy in some quarters.
