Bitcoin rallies to historic highs near $100,000 amid optimism for Donald Trump’s pro-crypto policies

Bitcoin reached a record high on Wednesday, surpassing $90,000, driven by optimism surrounding Donald Trump's presidency and its potential impact on the cryptocurrency market. Investors are hopeful that Trump's policies will be supportive of digital currencies, possibly integrating bitcoin into the country's official assets.

Since the US election on November 5, bitcoin has seen significant gains, peaking at $93,480 before settling at $88,185, marking a 32 per cent rise in just over a week. Other cryptocurrencies have also experienced rallies, with Ethereum increasing by 37 per cent, and dogecoin, often endorsed by Elon Musk, a Trump supporter, soaring by over 150 per cent.

Edul Patel, CEO of Mudrex says, "both technical and fundamental indicators signal continued strength in BTC, with the Fear and Greed Index reflecting “Extreme Greed,” indicating bullish market sentiment. Additionally, over $850 million in options are positioned at the $100,000 level, showing the trader confidence in the rally. BTC faces its next resistance at $94,200 and the support remains at $85,500."In response to these developments, several companies have made significant investments in bitcoin. MicroStrategy, known for its substantial bitcoin holdings, recently acquired $2 billion worth of bitcoin between October 31 and November 10. The company's stock also hit a record high, reflecting the optimistic market sentiment. Additionally, Trump's family has launched a new crypto venture, World Liberty Financial, indicating continued interest in the sector.

Sumit Gupta, co-founder, CoinDCX said, "Bitcoin's recent surge, surpassing the $90,000 mark, is a clear reflection of a perfect storm of market optimism, shifting macroeconomic dynamics, and growing institutional interest. As global governments and corporations increasingly recognize Bitcoin’s potential as a strategic asset. The $100,000 threshold now stands as a critical psychological milestone, and with significant ETF inflows and continued institutional demand, Bitcoin’s upward trajectory appears poised to continue. While we have seen some correction after BTC crossed the $92,000 mark, no significant resistance remains in sight."

He further added, "Additionally, the recent appointments of Elon Musk and Vivek Ramaswamy to head the new Department of Government Efficiency (DOGE) have further fueled optimism in the crypto space. Both figures are known for their pro-crypto stance, and their government involvement sends a positive signal to investors, bolstering confidence in the market."

Despite the positive outlook, some experts caution about potential market instability. Sumit Gupta said, "Beyond Bitcoin, we’re also witnessing a surge in interest towards other tokens, However, with the current level of ‘extreme greed’ as indicated by the Crypto Fear and Greed Index, we advise all retail investors to do their own research and understand their risk appetite before making any investment decisions."