The globally known cryptocurrency, Bitcoin, has surpassed the $94,000 mark, hitting a new record high, following reports that US President-elect Donald Trump’s social media company is in talks to acquire cryptocurrency trading firm Bakkt.
This development has fueled expectations of a cryptocurrency-friendly environment under the incoming administration.
Bitcoin has more than doubled in value this year, with its most recent price hitting $92,104 during Asian trading hours on Wednesday, after briefly touching $94,078 at the end of the previous session.
The Financial Times reported that Trump Media and Technology Group, which operates Truth Social, is close to a deal to acquire Bakkt in an all-stock transaction.
Bakkt, which is backed by the Intercontinental Exchange, operates a platform for cryptocurrency trading.
Tony Sycamore, the market analyst at IG, has linked the surge in Bitcoin’s price to the Bakkt acquisition talks, the launch of options trading for Bitcoin on the Nasdaq, and BlackRock’s Bitcoin ETF.
Cryptocurrency values have soared since the November 5 US elections, driven by traders’ optimism that Trump’s policies could create a more favorable regulatory environment for digital assets.
According to analytics and data aggregator – CoinGecko, this optimism has contributed to the global cryptocurrency market reaching a record value of over $3 trillion.
Analysts, including Chris Weston from Australian online broker Pepperstone, see strong buying pressure for Bitcoin, suggesting that, “another kick higher should bring in a fresh chase from those who like to buy what’s strong”.
