Bitcoin surged to a new high of $93,445 on Wednesday, jumping 34% from post-U.S. elections levels. The new euphoria places it after unofficial President-elect Donald Trump assumed a friendly posture toward virtual assets. He promised the regulatory backing of such assets. Analysts believe that a Trump administration will inflate Bitcoin ETFs and related stocks like Coinbase COIN and Robinhood HOOD.
Trump’s campaign promises include plans to replace SEC Chair Gary Gensler with a pro-crypto appointee and establish a national bitcoin reserve. During a July conference, he pledged to make the U.S. a global crypto powerhouse.
While Bitcoin pushes toward $100,000, crypto security experts urge caution. Anthony Yeung of CoinCover warns that Bitcoin’s volatility, combined with new investor interest, may increase fraudulent activity. He advises potential investors to educate themselves on the risks before diving in.
Bitcoin ETFs have seen significant inflows, with BlackRock’s iShares Bitcoin Trust ETF (IBIT) leading, bringing in over $1.5 billion. This follows a general trend of investment in spot Bitcoin ETFs, which have attracted $27.7 billion in inflows since January, signaling strong institutional interest.
Coinbase shares have seen high volatility, surging 48% last week before sliding midweek, while Robinhood’s shares reached a three-year high last week. Meanwhile, Bitcoin miners like Bit Digital and MARA Holdings continued their rally, benefiting from Bitcoin’s steady climb this year.
As of Wednesday, Bitcoin had more than doubled in 2024, with Ethereum, the second-largest cryptocurrency, also seeing gains, though still below its 2021 peak.
