Bitcoin hits a new all time high, reaching over $106,000, with many speculating the cryptocurrency could surpass $120,000 by the end of the year

Bitcoin has smashed through new boundaries, reaching an unprecedented high of over $106,000, marking a more than 50% increase since Donald Trump’s election victory earlier this month. While the cryptocurrency briefly touched the record-breaking figure, it later stabilised around $104,500 during Asian trading hours on Monday. This surge is the latest in a rally that has seen Bitcoin’s value soar following Trump’s victory, prompting discussions about a potential “parabolic” rise as the cryptocurrency sector anticipates pro-crypto policies under his administration.

Trump’s stance on cryptocurrency is a significant departure from the previous administration’s more cautious approach. Investors are betting on the incoming administration’s more favourable posture towards digital currencies, which many believe could further fuel Bitcoin’s rise. Trump’s remarks about creating a national Bitcoin stockpile similar to the United States’ strategic oil reserve have sparked further enthusiasm among investors, suggesting that the cryptocurrency could become even more deeply integrated into the nation’s financial framework.

Peter McGuire, from trading platform XM.com, commented on the meteoric rise, noting that the “fear of missing out” (FOMO) is pushing investors to accelerate their purchasing of Bitcoin. “The Bitcoin rally since the election has been parabolic,” McGuire told the BBC, adding that many analysts now predict that Bitcoin could reach $120,000 by the end of this year, with some suggesting that the cryptocurrency could even surpass $150,000 by mid-2025.

Trump’s stance on cryptocurrencies has been a hot topic since his election, with many praising his support for the sector. The appointment of Silicon Valley entrepreneur David Sacks as Trump’s artificial intelligence and cryptocurrency tsar further solidified the link between the incoming president and the digital asset industry. Sacks, a former PayPal executive and close ally of Trump’s advisor Elon Musk, is expected to influence the future direction of crypto policies in the United States.

Additionally, Trump’s anticipated nomination of Paul Atkins, a Washington attorney with strong pro-cryptocurrency views, as the new head of the Securities and Exchange Commission (SEC) has also contributed to the positive market sentiment. This comes after the current SEC chairman, Gary Gensler, announced his resignation on the day of Trump’s inauguration in January. Gensler’s tenure has been controversial, particularly regarding his legal actions against cryptocurrency firms, which some see as overly aggressive and harmful to the crypto market.

This shift in regulatory oversight is being welcomed by many in the crypto space, who believe that a friendlier regulatory environment could pave the way for even higher valuations and greater institutional investment in Bitcoin and other cryptocurrencies. As the Trump administration prepares to take office, Bitcoin’s record-breaking surge serves as a sign of the growing influence and potential of digital currencies in global markets.

As for Bitcoin’s future, the question now remains: how high can it go? While $120,000 is seen as an achievable target by some investors, others are already speculating that the cryptocurrency could continue to defy expectations, with predictions for its value exceeding $150,000 within the next year.

For many, the allure of Bitcoin’s growth under a Trump-led administration is undeniable, and the cryptocurrency’s ability to break new records is fueling both excitement and uncertainty. With government support on the horizon, Bitcoin’s future has never seemed brighter—or more volatile.