Bitcoin rose to an all-time high above $94,000 as a report that Donald Trump’s social media company was in talks to buy cryptocurrency trading firm Bakkt boosted expectations of a crypto-friendly regime under his incoming administration. .
Bitcoin, the world’s largest and best-known cryptocurrency, has more than doubled in value this year. It last traded at $93.521 on Wednesday, having hit a high of $94.078 in the early hours of trading in Asia.
The Financial Times said Trump Media and Technology Group, which operates Truth Social, is close to an all-share acquisition of Bakkt, which is backed by the owner of the NYSE Intercontinental Exchange.
“Trump’s apparent interest in pushing cryptocurrencies on a personal level has contributed to optimism that cryptocurrencies will be a priority when Trump takes office,” said Stéphane Ouellette, CEO of cryptocurrency trading firm FRNT Financial.
Earlier this week, the Wall Street Journal reported that Trump had met privately with crypto exchange CEO Brian Armstrong, further contributing to the optimism.
Don’t miss: Trump Media is in talks to acquire crypto merchant Bakkt
Crypto sector remains solid since Trump’s victory in the elections
Cryptocurrencies have soared since the US election on November 5, as traders bet that President-elect Trump’s promised support for digital assets would lead to a less restrictive regulatory regime.
Options trading on BlackRock’s spot bitcoin ETF on the Nasdaq had a strong debut on Tuesday, with a bullish call-to-put ratio of 4.4:1, according to QCP Capital.
“We expect these options to be popular and, in turn, can positively influence the trading volumes of these ETPs (exchange-traded products) as an underlying,” said Kenneth Worthington, an analyst at JPMorgan.
The growing enthusiasm has pushed the value of the global cryptocurrency market past $3 trillion to an all-time high, according to data and analytics aggregator CoinGecko.
Spot bitcoin exchange-traded products in the United States have attracted about $4.2 billion in inflows since Trump’s election victory, about 15% of total inflows since the products launched on U.S. exchanges in January.
With information from Reuters.
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What factors have contributed to the recent surge in Bitcoin prices according to John Smith, and how might the potential acquisition of Bakkt impact future cryptocurrency regulations?
Interviewer (I): Hello everyone, welcome to World Today News. I am delighted to have two renowned guests today, Mr. John Smith, a crypto investor and analyst, and Ms. Sarah James, a financial journalist. Let’s start the discussion with the recent surge in Bitcoin prices and the possible influence of Donald Trump’s administration on the cryptocurrency market. John, how do you explain the sudden rise in Bitcoin values?
John Smith (JS): Thank you, I’m happy to be here. The recent surge in Bitcoin prices can be attributed to a few factors. For one, we’ve had increased institutional adoption with companies like Tesla and MicroStrategy investing heavily in Bitcoin, and the possibility of a Bitcoin ETF being approved by the SEC. Additionally, the election of Joe Biden has caused some to believe that central banks will continue to print money to stimulate the economy, potentially leading to inflation, which could drive investors towards Bitcoin as a potential hedge against that inflation. However, the most significant event that has contributed to this recent rise has been the news about Trump Media’s potential acquisition of Bakkt, which could signal a more crypto-friendly stance from the incoming administration.
I: That’s a fascinating perspective, Sarah. As a financial journalist, what are your thoughts on this development? In your opinion, what role does the possible acquisition of Bakkt play in the crypto market’s perception of a potential Trump administration?
Sarah James (SJ): Yes, it’s certainly an exciting time for the crypto industry. The potential acquisition of Bakkt by Trump Media could signal a shift in the regulatory landscape surrounding cryptocurrencies. Bakkt is highly respected in the industry and has established strong relationships with traditional financial institutions, which could help legitimize the space in the eyes of regulators. Additionally, Stéphane Ouellette, the CEO of FRNT Financial, has stated that Trump’s personal interest in cryptocurrencies has contributed to expectations of a more crypto-friendly regime. Of course, it’s essential to remember that the discussions are still ongoing, and there are no guarantees that the acquisition will go through or have the desired impact on regulation.
