The Bitcoin (CRYPTO: BTC) price is at it again.
And by 'it' I mean racing into new record-high territory.
The world's original and biggest cryptocurrency is up more than 11% over the past 24 hours, currently trading for US$89,476.02 (AU$133,392.78). Just two hours ago the token hit a new high watermark of US$89,604.50.
At time of writing, this sees the Bitcoin price up 32% over the past week and up 158% over 12 months.
It also gives the digital token an eye-watering market cap of US$1.76 trillion dollars.
And it's not just Bitcoin that's soaring.
Ethereum (CRYPTO: ETH), the world's second-biggest cryptocurrency with a market cap of US$403 billion, is up 4% in a day and up 40% over the past week, trading for US$3,345.10. Unlike Bitcoin, Ethereum remains some 32% below its 16 November 2021 record high of US$4,892.
Image source: Getty Images
What's sending cryptocurrencies soaring?
The biggest driver behind the surge in the Bitcoin price and most other global cryptocurrencies is the decisive election of Donald Trump in the United States presidential election last week.
With Trump's Republican party also commanding a majority in the US Senate and looking to do the same in the House of Representatives, crypto investors are looking forward to Trump's decidedly pro-crypto policies.
Unlike the increased crackdowns looming under a renewed Democratic presidency, Trump aims to ease the rules around crypto and has spruiked the idea of creating a strategic US Bitcoin stockpile.
Judging by the soaring prices posted by the vast majority of the top 100 cryptocurrencies in the week since the US election, the market appears confident Trump will follow through with his pledges.
What are the experts saying about the rocketing Bitcoin price?
Commenting on the soaring Bitcoin price, Caroline Bowler, CEO of BTC Markets said:
Investor optimism has surged with the return of Donald Trump's presidency, as his pro-growth economic policies and favourable regulatory outlook help restore confidence in the financial markets, particularly in digital assets.
BlackRock's Bitcoin ETF has seen a record-breaking US$1.1 billion in single-day inflows, an unprecedented milestone for any ETF, especially one launched in January 2024. This surge underscores strong investor confidence…
Chris Weston, head of research at Pepperstone Group said Bitcoin is in "beast mode."
"The question for traders not already set is whether there is still room to chase this red-hot play or wait for a slight retracement and for some of the heat to come out of the impulsive trend," Weston said (quoted by Bloomberg).
As for what to expect from the Bitcoin price now, Weston added there was "little value" in this kind of speculation (quoted by The Australian Financial Review):
The chase is on, and with such significant inflows into the respective bitcoin ETFs, many feel that a change of regulatory regime is the green light for increased institutional adoption.
Putting a near-term target on where Bitcoin can trade seems a task that offers little value, as this is now about the art of holding and pushing for that genuine outlier in the distribution.
