Bitcoin surged to a record high above $94,000, driven by reports that Donald Trump’s social media company, Trump Media & Technology Group, is in talks to acquire crypto trading firm Bakkt.
This news fueled optimism for a cryptocurrency-friendly regulatory environment under Trump’s upcoming administration.
Bitcoin, the world’s largest and most recognized cryptocurrency, has more than doubled in value this year, with the latest price standing at $92,104 in Asian trading hours on Wednesday, following a brief peak of $94,078 in the previous session.
The recent rally follows Trump’s reelection as President of the United States, with Bitcoin surpassing its March 2023 peak of $73,737, reaching a new high of $74,504 before the official election results were confirmed.
The Financial Times, citing two people with knowledge, said that Trump Media and Technology Group, which operates Truth Social, is close to an all-stock acquisition of Bakkt, which is backed by NYSE-owner Intercontinental Exchange. Reports indicate that the price surge was further bolstered by the news contributing to expectations of a favorable regulatory framework for cryptocurrencies.
The launch of options trading for BlackRock’s iShares Bitcoin Trust has also provided investors with new opportunities to hedge and speculate on Bitcoin’s price, which further supports its upward trajectory.
Meanwhile, Michael Saylor, founder and Executive Chairman of MicroStrategy, which holds $30 billion in Bitcoin, has forecasted that the cryptocurrency could hit $100,000 by the end of 2024.
