Bitcoin (BTC-USD) Reclaims Investor Attention, Surges Past $107K to a New Record

The token has gained more than 50% since Donald Trump's presidential victory in November on optimism over bitcoin-friendly policies under his incoming administration.

Bitcoin (BTC-USD) hit a new record on Monday, continuing its rally to fresh highs amid optimism over crypto-friendly policies under the incoming Biden administration.

The world's biggest cryptocurrency jumped as high as $107,140 on Monday afternoon in New York, notching a gain of more than 50% since Donald Trump's presidential victory in November.

Bitcoin's price has more than doubled so far this year, with much of the upward price action coming from institutional buyers and exchange-traded funds (ETFs).

"Bitcoin ETF demand has been relentless with over $2Bn inflows clocked last week. Seven out of the last nine weeks, Bitcoin ETF inflows have exceeded $2Bn," Bernstein analyst Gautam Chhugani wrote in a note on Monday.

Even as bitcoin's price has soared this year, Chhugani still sees the token hitting $200,000 by the end of 2025.

"We maintain our long-term price target of $200k by 2025e, driven by institutional adoption and bitcoin's scarcity premium," Chhugani said.

Institutions bought 683,000 bitcoins year-to-date via spot ETFs and MicroStrategy (MSTR) purchases, Standard Chartered analysts said.

About a third of those inflows, or the purchase of 245,000 bitcoins, have occurred since the presidential election.

"In 2025, we expect institutional flows to continue at or above the 2024 pace," Geoff Kendrick, Standard Chartered's global head of digital assets research, wrote earlier this month.

Crypto-related stocks also rallied on Monday, with bitcoin proxy MicroStrategy (MSTR) popping 6% as investors reacted to the company's latest token purchase and its upcoming addition to the Nasdaq 100.

"We are now officially in a bitcoin bull market with the MSTR addition to the Nasdaq 100 and another round of bitcoin buying," Chuggani said.

Crypto-exchange Coinbase (COIN) also rose 3% on Monday, while bitcoin mining firm Riot Blockchain (RIOT) advanced 6%.

"Bitcoin is up another 5% today, continuing its record-breaking rally to new highs. This comes as institutions continue to flock to the digital asset and as bitcoin is set to be added to the S&P 500 in March," Seaport Global analyst Chris Brendler said on Monday.

"We continue to believe that bitcoin will trade in a range of $100,000 to $200,000 over the next several years with an average price of $150,000."

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Bitcoin's meteoric rise over the past month has made the asset hard to ignore even among more traditional portfolio managers.

"It’s worked like crazy, and it’ll probably continue to work like crazy, but I can’t put my pencil to the paper and make sense of it from a financial standpoint," Annandale Capital founder and Chairman George Seay told Yahoo Finance on Monday morning.

"It’s much more of a psychological anti-fiat currency, anti-government, anti-inflation trade, but it’s worked so I don’t have anything against it."