Bitcoin is once again capturing the attention of the financial world, rapidly approaching the $100,000 mark as the largest digital asset regains momentum following Donald Trump’s US Election victory.
With Congress set to certify Trump’s win, the cryptocurrency has experienced a surge, fueled by optimism for a potentially more crypto-friendly regulatory environment in the United States.
Bitcoin’s bullish rebound
The original cryptocurrency rose as much as 1.41% to $99,871 on Monday, with a weekly gain of 5.66% as of Sunday, its largest since November 24th, according to data compiled by Bloomberg.
This surge represents a significant rebound after Bitcoin’s record-breaking run in 2024 lost steam in late December, as investors moved to book profits.
The previous rally was also spurred by optimism that a pro-crypto White House under Trump would create a supportive regime in the US, which helped push the token to an all-time high of $108,315.
Now, with Trump’s win set to be ratified by Congress on Monday, those bullish sentiments are reigniting.
Positive market indicators
“A super cycle of 2025 is anticipated with regulatory reforms by the Trump government,” said Khushboo Khullar, venture partner at Lightning Ventures, which invests in Bitcoin-linked firms.
This optimistic outlook is further supported by significant investor activity, with a net $908 million pouring into US Bitcoin exchange-traded funds on Friday.
This inflow represents the fifth largest since their launch in January 2024, contrasting sharply with a record net outflow of $680 million on December 19.
Furthermore, the recovery of the Bitcoin Coinbase Premium, which tracks the price difference of the token on Coinbase Global Inc. and Binance Holdings Ltd., also points toward stronger investor demand in the US.
Coinbase Premium as a gauge of demand
The Coinbase Premium had previously crashed to its lowest point since the collapse of Sam Bankman-Fried’s FTX in 2022, but it has since recovered, signaling renewed interest from US investors.
“The ETF issuers almost all trade and custody with Coinbase so they tend to push the premium or discount based on demand for the ETF,” explained Joe McCann, founder and chief executive officer of Miami-based crypto hedge fund Asymmetric.
This dynamic is further bolstering Bitcoin’s upward trajectory.
Uncertainty remains despite rally
While the current surge is undeniable, the long-term prospects for Bitcoin in 2025 remain somewhat uncertain and will partly depend on whether Trump follows through on his crypto pledges, which include establishing a national stockpile of Bitcoin.
A recent MLIV Pulse survey indicates that not all investors are convinced of the rally’s sustainability.
In a survey asking which winning investments of 2024 are most likely to turn into losers in 2025, 39% of respondents chose Bitcoin, making it the most likely to be seen as a potential loser.
Bitcoin was trading at $99,119 as of 8:57 a.m. in London on Monday.
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