Bitcoin Marches Toward $100,000 as Investors Bet on Trump-Era Boom

Bitcoin prices topped $95,000 for the first time in Asia trade, touching a high just above $95,040.

Bitcoin price hit a fresh record high on Thursday, as hopes of a friendlier U.S. regulatory approach to cryptocurrencies under President-elect Donald Trump spurred optimism over a bright outlook for the digital asset.

Bitcoin scaled to a high of $95,040 in Asia trade, according to data from Coinbase. The cryptocurrency last stood at $94,864, up 0.2% over the past 24 hours.

Bitcoin prices have surged more than 40% since Trump was voted in as the next U.S. president and a slew of pro-crypto lawmakers were elected to Congress.

"While it's now firmly into overbought territory, it is being drawn toward the $100,000 level," said Tony Sycamore, analyst at IG Markets.

"The path of least resistance is still up for bitcoin, despite the fanfare around the round-number resistance levels."

Bitcoin prices have skyrocketed about 400% so far in 2021, as institutional investors and major Wall Street banks ramped up their engagement with the cryptocurrency.

But the cryptocurrency’s breakneck rally has also sparked concerns over a potential bubble, with some analysts warning that the digital asset is set for a deep correction.

"The gains are unsustainable, and a price correction is inevitable," said Edward Moya, senior market analyst at OANDA.

"The bitcoin bull case will continue to hinge on institutional demand and the narrative that bitcoin is a hedge against inflation."

"If the bitcoin price correction unfolds quickly, then the selling pressure could be amplified."

Meanwhile, crypto-related stocks also continued to rally. Shares in bitcoin miner MARA Holdings were up nearly 14% overnight, while MicroStrategy, a loss-making software company that has been buying bitcoin, rose 10% to take its market capitalisation past $100 billion.