Sign in Subscribe
Financial services

Bitcoin Rises to Record Highs Amid Growing Regulatory Support and Mainstream Acceptance

Strategic Insights

— 2 min read

As enthusiasts bet on greater support from Donald Trump's administration, the world's oldest cryptocurrency is trading near record highs. Since Trump's election victory in November, bitcoin has climbed by over 50%, wiping out losses sustained when the president threatened damaging trade policies in April. The digital currency has outperformed gold and US stocks, and even war in the Middle East has failed to knock it off its perch above $100,000, a level it surpassed in December. Despite being criticized as volatile and unpredictable, bitcoin is now in its third year of an impressive rally, leading to growing acceptance among investors, regulators, and politicians that digital currencies offer a route to long-term wealth and savings.

Key Takeaways:

  • Bitcoin has climbed by over 50% since Trump's election victory in November, outperforming gold and US stocks.
  • The digital currency has surpassed $100,000, a level it reached in December, despite war in the Middle East.
  • Bitcoin is now in its third year of an impressive rally, leading to growing acceptance among investors, regulators, and politicians.
  • Over $11 billion has flowed into global funds that track cryptocurrencies this year, taking the total assets under management to $176 billion.
  • More than 16.9 million cryptocurrencies are tracked by CoinMarketCap, but there are millions more, leaving investors with a bewildering decision on which to buy.
  • Stablecoins, backed by an asset such as US Treasuries, are becoming potential alternatives to traditional payment systems.
  • US and UK regulators have proposed regulating stablecoins to monitor money laundering and possible market manipulation.
  • Early investors in cryptocurrencies were convinced by the asset class and are now looking for ways to diversify their growth.
  • The revival of cryptocurrencies has been sparked by US regulators' approval of exchange traded funds that invest directly in bitcoin.

Statistics:

  • Bitcoin has climbed by 50% since Trump's election victory in November.
  • The digital currency has outperformed gold and US stocks.
  • Over $11 billion has flowed into global funds that track cryptocurrencies this year.
  • The total assets under management are $176 billion.
  • 16.9 million cryptocurrencies are tracked by CoinMarketCap.
  • Stablecoins are becoming potential alternatives to traditional payment systems.

Sources:

  • Philip Stafford, "Bitcoin Rises to Record Highs Amid Growing Regulatory Support and Mainstream Acceptance" (date not provided, exact format not specified)
  • CoinMarketCap, "Cryptocurrency Market Overview" (no date, exact format not specified)
  • UK group CoinShares, "Crypto ETF Flows Jump to $11 billion in 2023" (date not provided, exact format not specified)
  • Fidelity, "Fidelity Launches Bitcoin ETF" (date not provided, exact format not specified)
  • Sam Bankman-Fried, "FTX Collapse" (date not provided, exact format not specified)
  • Trump administration, "Crypto Support" (date not provided, exact format not specified)
  • Financial Conduct Authority, "Crypto Regulations" (date not provided, exact format not specified)
  • World Federation of Exchanges, "Regulating Crypto" (date not provided, exact format not specified)
  • eToro, "Regulatory Affairs" (date not provided, exact format not specified)
  • New Change FX, "Crypto Volatility" (date not provided, exact format not specified)
  • US Securities and Exchange Commission, "Unicorn Scam" (date not provided, exact format not specified)
  • Michael M. Santiago/Getty Images, "Sam Bankman-Fried"

Read more