Bitcoin Soars to Record High on Trump’s Support and MicroStrategy’s Inclusion in Nasdaq 100 Index
In a significant development, Bitcoin has surged to an unprecedented record high of over $106,000, fueled by the support of President-elect Donald Trump and the inclusion of MicroStrategy Inc. in the key US stock gauge, Nasdaq 100 Index.
Trump’s Friendly Regulatory Backdrop for Digital Assets
President-elect Donald Trump is moving towards creating a friendly regulatory backdrop for digital assets, undoing the crackdown imposed by President Joe Biden’s outgoing administration. The Republican has also backed the idea of a strategic national Bitcoin stockpile, although many question the feasibility of this proposal. As Aya Kantorovich, co-founder of institutional crypto platform August, noted on Bloomberg Television:
"A lot of people are basing their expectation on a much more favorable administration."
This optimism is reflected in demand for exchange-traded funds (ETFs) investing in digital assets. The excitement surrounding Trump’s support and the favorable regulatory environment has contributed to the significant gains in Bitcoin.
MicroStrategy’s Inclusion in Nasdaq 100 Index
On Friday, Nasdaq Global Indices announced that MicroStrategy will join the Nasdaq 100 Index, a US technology stock gauge tracked by an array of investment funds. The software maker has transformed into a leveraged bet on Bitcoin as the company raises billions of dollars to plow into the digital asset.
Sean McNulty, director of trading at liquidity provider Arbelos Markets, commented:
"Now that MicroStrategy is in Nasdaq, index funds may buy its shares, and that will help the company to raise more equity to buy more Bitcoin."
This development has further solidified the case for institutional acceptance of Bitcoin and has contributed to its record-breaking price.
Sixth Consecutive Monday with Bitcoin Purchases
It was the sixth consecutive Monday that Tysons Corner, Virginia-based firm MicroStrategy announced purchases of the digital asset. The company owns approximately $45 billion in Bitcoin, making it the latest publicly-traded corporate owner of the cryptocurrency.
The inclusion of MicroStrategy in the Nasdaq 100 Index represents a major stamp of institutional acceptance for its controversy-courting founder, Michael Saylor, whose disdain for Wall Street convention has helped spur a 500% rally in its shares this year and made him a hero to Bitcoin bulls.
Bitcoin’s Seven-Week Winning Streak
The original cryptocurrency has more than doubled this year and changed hands around $103,900 as of 8:37 a.m. on Monday in New York. Smaller tokens such as second-ranked Ether also pushed higher. Bitcoin through Sunday cemented a seven-week winning streak, the longest such run since 2021.
However, the pace of gains cooled more recently, which could be an indication that "a pullback may be coming," IG Australia Pty Market Analyst Tony Sycamore wrote in a note.
ETFs Investing in Bitcoin and Ether
US ETFs investing directly in Bitcoin have attracted $12.2 billion of net inflows since Trump’s victory in the presidential election on November 5. Subscriptions for similar products for Ether have reached $2.8 billion over the same period.
As Adam Haigh noted:
"The surge in demand for these funds is likely driven by the growing acceptance and adoption of digital assets, particularly among institutional investors."
Conclusion
The record-breaking price of Bitcoin is a testament to the growing acceptance and adoption of digital assets. The support of President-elect Donald Trump and the inclusion of MicroStrategy in the Nasdaq 100 Index have contributed significantly to this development.
As the crypto market continues to evolve, it will be essential for investors to stay informed about the latest developments and trends. With Bitcoin’s price surging to new heights, it is clear that digital assets are becoming increasingly important players in the global financial landscape.
Recommended Reading
- It’s All Fun and Meme Coins, Until Markets Turn: A commentary on the risks associated with investing in meme coins.
- Vancouver Votes to ‘Get Ahead’ on Bitcoin: An article highlighting Vancouver’s efforts to become a hub for cryptocurrency adoption.
- Bitcoin Breaks Through $100,000 Milestone: A report on Bitcoin’s recent price surge and its implications for the crypto market.
Join the Conversation
Share your thoughts on Bitcoin’s record-breaking price and its significance in the global financial landscape. What do you think about the growing acceptance of digital assets among institutional investors? Let us know in the comments section below!
