Bitcoin Closing in on $90,000 as Crypto-Friendly Regulations Fuel Rally

Bitcoin soared to an impressive $89,100 Monday night, after breaking the $80,000 threshold just a day prior, according to Coin Metrics data. This significant rise, reaching as high as $89,623 earlier in the day, has investors buzzing about the possibility of bitcoin hitting $100,000 by year’s end.

Analysts believe the cryptocurrency has now entered "price discovery mode," especially following bitcoin’s surge past all-time highs last Wednesday. Colonnese credits President-elect Donald Trump’s commitment to fostering a more crypto-friendly regulatory environment as a major factor in sustaining bitcoin’s upward momentum, which he predicts could drive prices into six figures before the year ends.

In the evolving regulatory landscape, Washington has generally exempted bitcoin from securities laws, while many other cryptocurrencies have operated in a murky "grey area." But the mood has "shifted 180 degrees" toward a more supportive stance for the crypto industry. This shift adds a regulatory "tailwind" to the already bullish crypto market cycle.

Bitcoin's rally also spurred increases in other major cryptocurrencies. Ethereum rose by 5.8%, XRP climbed nearly 4%, and Polygon’s token gained over 4%. Dogecoin surged by a remarkable 38%, potentially fueled by Elon Musk’s support, which many believe contributed to Trump’s recent election win.

The crypto surge also echoed in stock markets, with Coinbase and MicroStrategy stocks climbing 3% and 5%, respectively, in after-hours trading. Coinbase’s 19% surge during regular trading propelled its price over $300, marking its highest level since 2021 and bringing it within 6% of that year’s peak.

While some traders caution about possible pullbacks, many, feel confident that bitcoin’s journey to $100,000 remains on track. We’re in a new crypto market cycle, that the current trend is biased to the upside. The consensus: this bitcoin rally is only just beginning.