LONDON, Nov 22 (Reuters) – Bitcoin touched a fresh record high on Friday, with its sights set firmly on the $100,000 barrier, in a stellar rally for the cryptocurrency sparked by expectations of a more friendly regulatory environment under a Donald Trump administration.
The cryptocurrency’s gains though were more measured on Friday. After touching a fresh record high above $99,000 , bitcoin pulled back a touch to trade up just 0.5% on the day, around $98,500.
Still, the momentum for further gains appeared strong with bitcoin poised for a third straight week of plus 10% gains. It is also on track for its best monthly performance since February.
The cryptocurrency also appears on the cusp of mainstream acceptance since its creation 16 years ago.
“The longer it survives it is taken more seriously, that’s just the reality of things,” said Shane Oliver, chief economist and head of investment strategy at AMP Sydney.
“As an economist and investor I find it very hard to value it… it’s anyone’s guess. But it does have a momentum aspect to it and at the moment the momentum is up.”
Indeed, bitcoin is up around 130% this year.
Under Gensler, the SEC sued exchange Coinbase , Kraken, Binance and others, alleging that their failure to register with the agency violated SEC rules, accusations the companies deny and are fighting in court.
Still, the approval of U.S.-listed bitcoin exchange-traded funds in January this year helped boost the market.
The SEC had long attempted to block ETFs from investing in bitcoin, citing investor protection concerns, but the products have allowed more investors, including institutional investors, to gain exposure to bitcoin.
More than $4 billion has streamed into U.S.-listed bitcoin exchange-traded funds since the election.
U.S.-listed crypto stocks, which have rallied in recent days, were steadier on Friday as the price surge paused.
But people were continuing to trade. Software firm Microstratgy which has repeatedly raised funds to buy bitcoin, and is a major holder of the asset, rose 2.6% in robust premarket trading.
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Reporting by Dhara Ranasinghe in London and Tom Westbrook in Singapore, additional reporting by Medha Singh in Bengaluru editing by Alun John, Kirsten Donovan and Susan Fenton
Our Standards: The Thomson Reuters Trust Principles.
