Bitcoin Nears $100,000 as Trump Election Spurs Crypto Demand

Bitcoin neared the $100,000 level on Friday as the election of Republican Donald Trump as U.S. president spurred expectations that his administration will create a friendly regulatory environment for cryptocurrencies.

Bitcoin approached the $100,000 mark on Friday as the election of Republican Donald Trump as U.S. president raised expectations that his administration will create a favorable regulatory climate for cryptocurrencies.

The world's largest cryptocurrency hovered between $98,000 and $99,000 in the previous session, briefly touching $99,073 on Thursday. Bitcoin rose 0.56 percent to $99,000 as of 06:49 GMT.

Bitcoin has more than doubled in value this year and gained about 40 percent in the two weeks since Trump was elected U.S. president and several pro-crypto lawmakers were elected to Congress.

Trump's election boosts crypto demandTrump expressed support for digital currencies during his campaign, promising to make the United States the "crypto capital of the planet" and to establish a national Bitcoin stockpile. Rising optimism followed as crypto investors anticipated the departure of U.S. Securities and Exchange Commission Chairman Gary Gensler, who has faced criticism for his stance on cryptocurrencies. Trump has stated that he will replace Gensler.

In September, Trump also announced a new crypto venture called World Liberty Financial. While details on the business have been limited, investors have interpreted his personal interest in the sector as a positive sign.

Bitcoin also rose after a report emerged that Donald Trump's social media company, Truth Social, was in talks to acquire crypto trading firm Bakkt, further fueling hopes of a cryptocurrency-friendly regime under the incoming administration. A pro-Bitcoin administration could also enable banks, custodians, and exchanges to participate in blockchain technology on an unprecedented scale.

Billionaire Elon Musk, a close Trump ally, has also shown support for cryptocurrencies. Bitcoin appears closer than ever to being widely accepted, over 16 years after its creation.

Read: Gold prices head for best week in a year as Russia-Ukraine tensions escalateU.S.-listed Bitcoin ETF approval fuels marketBitcoin's rapid recovery began after it fell below $16,000 in late 2022. The market was propelled by the approval of U.S.-listed Bitcoin exchange-traded funds in January this year. The Securities and Exchange Commission had long attempted to prevent ETFs from investing in Bitcoin, citing concerns about investor protection. However, these products have allowed a broader range of investors, including institutions, to gain exposure to Bitcoin.

More than $4 billion has flowed into U.S.-listed Bitcoin ETFs since the election. This week, the market saw a strong debut for options on BlackRock's ETF, with traders favoring call options over puts.