Technology & Innovation

Author: anonymDate: 2024-11-20 17:47:01

Bitcoin surpasses $94,000 for the first time

SINGAPORE, Nov 20 (Reuters) - Bitcoin achieved an unprecedented peak exceeding $94,000 following news that Donald Trump's social media venture was negotiating the purchase of cryptocurrency exchange Bakkt (BKKT.N), opens new tab, fueling optimism for a pro-cryptocurrency stance from the incoming Trump administration. Bitcoin, the leading and most recognizable digital currency globally, has more than doubled in value this year. Its price stood at $92,104 during Asian trading hours on Wednesday, having briefly reached a record high of $94,078 near the close of the preceding session.

The Financial Times, quoting two informed sources, reported that Trump Media and Technology Group (DJT.O), opens new tab, the operator of Truth Social, is on the verge of a complete stock-for-stock takeover of Bakkt, which enjoys backing from Intercontinental Exchange (ICE.N), opens new tab, the NYSE owner. Tony Sycamore, a market analyst at IG, attributed bitcoin's record high to speculation surrounding the Trump deal and investors capitalizing on the inaugural day of options trading on the Nasdaq alongside BlackRock's Bitcoin ETF (IBIT.O), opens new tab.

Digital currencies have experienced a surge since the November 5th U.S. election, driven by investor expectations that President-elect Trump's pledges of support for digital assets will result in a more lenient regulatory environment and revitalize bitcoin after a period of stagnation. This heightened enthusiasm has propelled the global cryptocurrency market capitalization beyond $3 trillion, establishing a new all-time high, according to CoinGecko, a leading analytics and data provider.

Chris Weston, the head of research at Pepperstone, an Australian online brokerage, noted significant underlying demand for bitcoin, adding that "further upward momentum should attract additional investment from those who favor buying assets demonstrating strength".