Bitcoin prices rose above $99,000 on Thursday, November 21, as the digital currency came ever closer to breaking through the $100,000 level.
The world’s most popular cryptocurrency reached nearly $99,400, according to Coinbase data from TradingView.
The digital asset, which has generated substantial visibility at many points, has managed to draw even more eyeballs recently as highly favorable market conditions push it to a string of fresh, all-time highs.
“The sentiment for Bitcoin is extremely bullish right now: From traders, media, retail investors an big institutions: Everybody wants to be part of the actual bull run which might be still in the beginning in my view,” Marc P. Bernegger, cofounder of crypto fund of funds AltAlpha Digital, said via emailed comments.
Now, the digital asset is fluctuating very close to the key, psychological level of $100,000, and surpassing this price point could have major implications for markets and trading.
“$100,000 will be an important milestone for bitcoin,” said Patrick Liou, principal of institutional sales for Gemini.
“Based on previous experiences, realized volatility to the upside tends to catch investor attention, which is still relatively low when examining historical Google search trends for ‘bitcoin.’ This could potentially fuel a further run for bitcoin above the $100,000 mark in the lead up to the inauguration and in Q1 2025,” he stated via emailed comments.
Liou emphasized the key importance of recent changes in the U.S. political landscape, stating that anticipation surrounding the “new regime” of government officials coming into the White House, U.S. Department of the Treasury, and U.S. Securities and Exchange Commission has been the single greatest factor bolstering digital currency markets over the last few weeks.
Within a matter of months, Republicans will have control of the White House, the U.S. Senate and the House of Representatives. Earlier this year, the GOP incorporated crypto into its platform, pledging to take a lighter approach to regulation.
The simple fact that SEC Chair Gary Gensler plans to step down on January 20 could mark a sea change in crypto regulatory policy, seeing as how he has taken a rather aggressive approach toward policing the space.
Gensler, who became the head of the SEC in April 2021, was nominated by President Joe Biden.
Donald Trump, who served as President between 2017 and 2021 and recently won a second term, had stated that he would fire Gensler on day one.
The former president has presented himself as a big supporter of digital currencies and the broader crypto industry, helping bolster the sentiment of industry participants now that his reelection has been secured.
“With the clear election of Trump as the 47th President of the United States, certainty now prevails,” said Eric Demuth, CEO and co-founder of Bitpanda. (Full disclosure, Bitpanda once compensated me for travel to speak at FinTechWeek Vienna 2019.)
“The final element of uncertainty has been removed, and the world’s largest financial market is on the verge of embracing liberal, crypto-friendly regulation for our industry,” he stated via emailed comments.
“We are witnessing a breakthrough in the best sense of the word. The positive developments of recent years – such as increasing retail adoption, crypto market regulation in Europe, central bank interest rate cuts, and the integration of crypto into traditional financial systems and bank portfolios – are now coming into full effect,” said Demuth.
“The market is eager, prices are rising. Bitcoin hitting $100,000 is not just a number – this is a true turning point,” he concluded.
Disclosure: I own some bitcoin, bitcoin cash, litecoin, ether, EOS and SOL.
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