Bitcoin at report highs, units sights on $100,000

By Dhara Ranasinghe, Tom Westbrook and Hannah Lang

NEW YORK/LONDON (Reuters) -Bitcoin touched a report excessive on Friday, with its sights set firmly on the $100,000 barrier, in a stellar rally for the cryptocurrency sparked by expectations of a extra pleasant regulatory surroundings beneath a Donald Trump administration.

It has greater than doubled in worth this 12 months and is up about 45% since Trump’s sweeping election victory on Nov. 5, when voters additionally elected a slew of pro-crypto lawmakers to Congress.

The cryptocurrency’s positive aspects, nonetheless, had been extra measured on Friday. After touching a contemporary report excessive above $99,800, bitcoin pulled again a contact to commerce up 1.33% on the day, round $99,383.

Nonetheless, the momentum for additional positive aspects appeared robust with bitcoin poised for a 3rd straight week of plus-10% positive aspects. It was additionally on monitor for its greatest month-to-month efficiency since February.

Its surge has made bitcoin one of many standout winners of so-called Trump trades – property which are seen as successful or shedding from the Republican president’s insurance policies.

The cryptocurrency additionally seems on the cusp of mainstream acceptance since its creation 16 years in the past.

“The longer it survives it’s taken extra significantly, that is simply the truth of issues,” mentioned Shane Oliver, chief economist and head of funding technique at AMP (OTC:) Sydney.

“As an economist and investor I discover it very arduous to worth it … it is anybody’s guess. But it surely does have a momentum side to it and in the intervening time the momentum is up.”

Certainly, bitcoin is up round 130% this 12 months.

Trump embraced digital property throughout his marketing campaign, promising to make the USA the “crypto capital of the planet” and to build up a nationwide stockpile of bitcoin.

Crypto buyers see an finish to elevated scrutiny from the U.S. Securities and Trade Fee after Chair Gary Gensler mentioned on Thursday he would step down in January when Trump takes workplace.

Below Gensler, the SEC sued alternate Coinbase (NASDAQ:), Kraken, Binance and others, alleging that their failure to register with the company violated SEC guidelines, accusations the businesses deny and are preventing in courtroom.

Nonetheless, the approval of U.S.-listed bitcoin exchange-traded funds in January this 12 months helped enhance the market.

The SEC had lengthy tried to dam ETFs from investing in bitcoin, citing investor safety considerations, however the merchandise have allowed extra buyers, together with institutional buyers, to achieve publicity to bitcoin.

Greater than $4 billion has streamed in to U.S.-listed bitcoin exchange-traded funds for the reason that election.

U.S.-listed crypto shares, which have rallied in current days, had been steadier on Friday as the worth surge paused.

However individuals had been persevering with to commerce. Software program (ETR:) agency Microstrategy (NASDAQ:) which has repeatedly raised funds to purchase bitcoin, and is a serious holder of the asset, closed 6.2% greater on Friday.