Bitcoin has been on an extraordinary journey, with its value soaring to new heights. President-elect Donald Trump's support for digital assets and MicroStrategy Inc.'s actions have played a significant role in this upward trend. The largest virtual currency rose more than 3.5 per cent at one point on Monday in Asia, reaching an unprecedented US$106,493, surpassing its previous peak from Dec. 5. MicroStrategy's recent purchases of another US$1.5 billion of Bitcoin in the past week have added to the momentum.

Trump's Impact on the Crypto Landscape

Trump is moving towards creating a more favorable regulatory backdrop for digital assets, undoing the crackdown imposed by President Joe Biden's outgoing administration. His support has instilled optimism among investors, as reflected in the demand for exchange-traded funds investing in digital assets. Aya Kantorovich, co-founder of institutional crypto platform August, stated on Bloomberg Television that many people are "basing their expectation on a much more favourable administration."The decision to add MicroStrategy to the Nasdaq 100 Index is a major milestone. It represents a significant stamp of institutional acceptance for MicroStrategy's controversial founder, Michael Saylor. His disdain for Wall Street convention has helped spur a 500 per cent rally in the company's shares this year and made him a hero to Bitcoin bulls.

Bitcoin's Recent Performance

Bitcoin through Sunday cemented a seven-week winning streak, the longest such run since 2021. However, the pace of gains has cooled recently, which could indicate that "a pullback may be coming." IG Australia Pty Market Analyst Tony Sycamore wrote in a note. Despite this, Bitcoin's value remains strong, changing hands around US$103,900 as of 8:37 a.m. on Monday in New York. Smaller tokens such as second-ranked Ether also pushed higher.US ETFs investing directly in Bitcoin have attracted US$12.2 billion of net inflows since Trump's victory in the presidential election on Nov. 5. Subscriptions for similar products for Ether have reached US$2.8 billion over the same period.

MicroStrategy's Role in the Crypto Market

It was the sixth consecutive Monday that the Tysons Corner, Virginia-based firm announced purchases of the digital asset. It now owns about US$45 billion in Bitcoin, making it the latest publicly-traded corporate owner of the cryptocurrency. The company's decision to raise billions of dollars to plow into Bitcoin has been a key driver of its success."Now that MicroStrategy is in Nasdaq, index funds may buy its shares, and that will help the company to raise more equity to buy more Bitcoin," said Sean McNulty, director of trading at liquidity provider Arbelos Markets. This has created a positive feedback loop, further fueling the growth of Bitcoin.