Bitcoin Soars to New All-Time High with Record-Breaking 7-Week Rally
Bitcoin hits $106,493 after a 7-week rally, driven by support for crypto-friendly policies and MicroStrategy’s addition to the Nasdaq 100 Index
Bitcoin has hit an all-time high, climbing above $106,493 during Asian trading on Monday. This marks the cryptocurrency’s longest seven-week winning streak since 2021, fueled by growing optimism about future regulations and market developments.
President-elect Donald Trump’s supportive stance on cryptocurrencies is giving investors hope for a more favorable regulatory environment. Trump has hinted at reversing restrictions imposed by the current administration and even floated the idea of a national Bitcoin reserve. While many are skeptical about how feasible this plan is, it has sparked confidence in the crypto market.
Adding to the momentum is MicroStrategy’s recent inclusion in the Nasdaq 100 Index, a major benchmark for US technology stocks. MicroStrategy, a company known for its heavy Bitcoin investments, is now expected to attract more institutional investors through index funds, potentially enabling the firm to acquire even more Bitcoin.
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“Now that MicroStrategy is part of the Nasdaq 100, we could see more index funds buying its shares, which would give the company additional capital to grow its Bitcoin holdings,” said Sean McNulty, trading director at Arbelos Markets.
Bitcoin’s value, which has more than doubled this year, was trading at $104,616 early Monday morning in London. Other cryptocurrencies, like Ethereum and Dogecoin, also saw price increases alongside Bitcoin’s rally.
Investors have also been pouring money into cryptocurrency-focused exchange-traded funds (ETFs). Since Trump’s election victory on November 5, Bitcoin ETFs in the US have drawn $12.2 billion in new investments, while Ethereum ETFs have seen $2.8 billion in inflows during the same period.
Despite the strong performance, some analysts are warning that Bitcoin’s rapid rise may slow down soon. Tony Sycamore, a market analyst at IG Australia, pointed out that the pace of gains has recently cooled, which could signal an upcoming correction.
Bitcoin’s record-breaking run showcases its growing appeal, but the market is keeping an eye on potential pullbacks as investors wait to see how upcoming regulatory changes and market conditions play out.
