Bitcoin Nears $100,000 Milestone as Institutional Investors Pour In

The cryptocurrency gained nearly 4% in 24 hours, driven by optimism around regulatory changes and strong trading volumes.

Bitcoin approached the highly anticipated $100,000 milestone on Friday, continuing its remarkable rally with support from institutional investors and optimism over regulatory changes.

The world's largest cryptocurrency rose nearly 4% in 24 hours to trade at $99,300 by 01:03 ET (05:03 GMT). It hit a record high of $99,840 on Monday.

Bitcoin's value has climbed over 48% since the recent U.S. election results, with Donald Trump's pro-crypto stance fueling the rally. Among other measures, Trump promised to make the United States a global hub for cryptocurrencies and is reportedly considering a dedicated cabinet position for crypto regulation.

The digital asset's market capitalization soared to $1.97 trillion, inching closer to the $2 trillion mark. Trading volume also saw a significant uptick, rising 9% to $95.84 billion.

The launch of options tied to BlackRock's (NYSE:BLK) iShares Bitcoin Trust sparked heightened interest from institutional investors in recent weeks. Moreover, the introduction of Bitcoin spot ETFs brought fresh liquidity to the market, attracting both retail and institutional buyers.

Shares of Bitcoin mining companies, such as Mara Holdings (NASDAQ:MARA) and MicroStrategy (NASDAQ:MSTR), mirrored Bitcoin's rise, indicating increased investor confidence in the ecosystem.

Optimism gripped the global cryptocurrency market as Bitcoin approached the $100,000 milestone, fueled by higher trading volumes. While Bitcoin dominated headlines, altcoins also posted strong gains.

Among the top 10 cryptocurrencies, Ethereum rose 8.2% to $3,365, while Solana, Cardano, and MATIC saw increases of 9%, 13.2%, and 6.1%, respectively. Meme tokens like Dogecoin also gained, recording an 8.3% weekly rise.

Further boosting sentiment, news emerged that Securities and Exchange Commission Chairman Gary Gensler will step down in January. Known for his strict enforcement against the crypto industry, Gensler's departure is expected to pave the way for more relaxed regulations under a Trump-led administration.

In another sign of bullish sentiment, Ripple's token, XRP, surged by 27% following the announcement of Gensler's resignation. Among other measures, Trump promised to legalize XRP during his campaign.

Bitcoin's recent gains also align with historical trends tied to its halving cycles. Such events, which occur roughly every four years and reduce the new supply of Bitcoin by half, have historically sparked price rallies.

The latest halving in April 2024 contributed to a 54% gain so far this year in Bitcoin's value. Analysts predict that the cryptocurrency's value could triple in the current post-halving cycle, potentially reaching $150,000.

However, analysts cautioned that potential inflationary pressures from Trump's proposed tariffs on Chinese goods could lead to tighter monetary policies by the Federal Reserve. Such a scenario could impact Bitcoin's momentum.

Despite its growing global adoption, Bitcoin's legal status in India remained up in the air following the recent announcement of a 30% tax on crypto gains.

While the tax move sparked speculation about a forthcoming regulatory framework, the Indian government has yet to officially legalize or regulate cryptocurrencies. As a result, Indian investors faced risks, and the lack of clear guidelines left the future of cryptocurrencies in India uncertain.