- Bitcoin breached the $99,000 level for the first time Thursday as investors continued pricing in a second Donald Trump presidency.
- Bitcoin has been regularly hitting fresh records this month on hopes that Trump will usher in a golden age of crypto.
- Bitcoin has gained about 130% in 2024.
Bitcoin breached the $99,000 level for the first time Thursday as investors continued pricing in a second Donald Trump presidency.
The price of the flagship cryptocurrency was last higher by more than 4% at $98,273.50, according to Coin Metrics. Earlier, it rose as high as $99,046.94.
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Investors took profits in crypto stocks amid a broader rotation out of tech. Crypto exchange Coinbase was lower by 7.7% and MicroStrategy dropped 16.2%. Mining stocks were under pressure, with the exception of Mara Holdings, up about 6.9%.
Bitcoin has been regularly hitting fresh records this month on hopes that Trump will usher in a golden age of crypto, which would include more supportive regulation for the industry and a potential national strategic bitcoin reserve or stockpile.
This most recent move was triggered by a spike in funding rates and open interest on the futures market during Asia trading. Around the same time, premiums in spot markets fell, according to data from CryptoQuant.
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Bitcoin's recent moves higher also triggered a wave of short liquidations – more than $100 million in a 24-hour period at one point, according to CoinGlass – sending the price further up overnight.
"Looking back at previous moves of this magnitude, BTC has historically either gone into a consolidation period, or ignored the overbought condition as investors pile in," Rob Ginsberg, an analyst at Wolfe Research, said in a Wednesday note.
"Being that we are just breaking out of one of those long consolidation periods, and price is currently at a new high ... something tells us the chase is on," he added. "The real test will come when the major psychological level of $100,000 is likely hit in coming weeks" — and could hit as soon as Thursday.
Another Trump term also implies larger budget deficits, potentially more inflation and changes to the international role of the dollar – all things that would have a positive impact on the price of bitcoin.
Bitcoin has gained about 130% in 2024.
— CNBC's Michael Bloom contributed reporting.
