Record-breaking Bitcoin surge: Cryptocurrency reaches unprecedented high of $122,000.
In recent times, Bitcoin has been making headlines for its impressive price surge, with the digital currency reaching an all-time high of $122,571 on various trading platforms. This upward trend, which began in late 2024, has been influenced by a combination of factors, including changes in political stance towards cryptocurrencies and increased institutional interest.
After Donald Trump's re-election in November 2024, Bitcoin experienced a significant surge. This rally was fueled by Trump's campaign promises, including plans to replace the SEC chairman, position America as the "crypto capital of the world," and create a "Strategic Bitcoin Reserve." The new presidency brought stronger political support for cryptocurrencies in the US, contributing to increased market optimism and volatility around legislative events related to cryptocurrency regulation.
Parallel to political factors, institutional holdings of Bitcoin have grown substantially. Large institutional holders now exert strategic long-term influence on the market, reducing the previously dominant role of speculative trading and leading to more moderate and stable price movements. ETFs in the US recorded significant net inflows, reflecting strong institutional appetite for Bitcoin as part of diversified portfolios.
The upward trajectory of Bitcoin began after Trump's election in early November 2020. Since then, spot Bitcoin ETFs have attracted 14.4 billion USD. Dilin Wu of Pepperstone and Aaron Hill of FP Markets have stated that the crypto-friendly measures of the Trump administration have given the segment legitimacy. Timo Emden from Emden Research noted that even the last speculators seem to be stocking up ahead of 'Crypto Week.'
However, it's important to note that the removal of regulatory hurdles in the crypto sector could come with potential risks and side effects. The US Congress is debating several legislative proposals for the crypto sector this week. Waning trust in state currencies due to rising debt is a factor in increased institutional interest in Bitcoin. Part of the momentum in Bitcoin's price is attributed to increased institutional interest.
In summary, both Trump’s evolving pro-crypto stance in his second presidency and increased institutional involvement have been key drivers behind the upward trend in Bitcoin’s price since late 2024. This has created a more mature and politically supported market environment. The upward trend in Bitcoin's price since Donald Trump's second presidency has been influenced by changes in his stance on cryptocurrencies and increased institutional interest.
[1] ntv.de, as/dpa/rts/DJ [2] [Source 2] [3] [Source 3] [4] [Source 4]
The European Union has shown interest in investing in the growing technology sector, particularly in the field of cryptocurrencies, following the upward trend of Bitcoin. The strategic long-term influence of institutional holders, such as large financial entities, has been a significant factor in the maturing of the cryptocurrency market.
