Bitcoin Hits Record High Above $94,000 as Trump's Social Media Company reportedly in Talks to Buy Crypto Trading Firm Bakkt

Bitcoin, the world's biggest and best-known cryptocurrency, has more than doubled this year.

Bitcoin hit a record high above $94,000 on Wednesday, as news that Donald Trump’s social media company is in talks to buy crypto trading firm Bakkt fuelled hopes of a cryptocurrency-friendly regime under the incoming Trump administration.

Bitcoin, the world’s largest and best-known cryptocurrency, has more than doubled this year. It was last up 1.2% at $92,104 in Asian hours on Wednesday, having touched a record high $94,078 just towards the end of the previous session.

The Financial Times, citing two people with knowledge, reported that Trump Media and Technology Group, which operates Truth Social, is close to an all-stock acquisition of Bakkt, which is backed by NYSE-owner Intercontinental Exchange Inc (NYSE:ICE).

The report comes after Bakkt said on Tuesday that it had agreed to go public through a merger with blank-check firm VPC Impact Acquisition Holdings II in a deal that valued the crypto platform at about $2.1 billion.

Bakkt shares were up nearly 3% in premarket trading on Wednesday, while those of ICE rose 0.3%.

Bitcoin’s record-high comes as the first day of options trading on the Nasdaq over BlackRock’s (NYSE:BLK) Bitcoin ETF also began.

The cryptocurrency soared more than 70% in the first half of December as traders bet that President-elect Trump’s promised support for digital assets will lead to a less restrictive regulatory regime and inject some life back into bitcoin after a listless few months.

Cryptocurrencies soared after the Nov. 5 U.S. election as traders bet that President-elect Trump’s promised support for digital assets will lead to a less restrictive regulatory regime.

The growing excitement has taken the global cryptocurrency market’s value above $3 trillion to a record high, according to analytics and data aggregator CoinGecko.

Among other cryptocurrencies, ether rose 0.8% to $3,124. Among the gainers were also dogecoin, which rose 1.2%, and XRP, which added 0.7%.

Pepperstone’s Weston added that there is real underlying buying pressure for bitcoin, and “another kick higher should bring in a fresh chase from those who like to buy what’s strong.”