Table of Contents
Bitcoin’s price is climbing Thursday morning, as are several stocks linked to cryptocurrencies, such as Coinbase and MicroStrategy.
Following Donald Trump’s presidential victory in November, the assets experienced a surge before cooling off at the end of the year.
Before falling toward the end of the year, Bitcoin reached its highest point in December when it crossed the $100,000 mark for the first time.
As Bitcoin (BTCUSD) increased, shares of cryptocurrency-focused businesses including Coinbase (COIN) and MicroStrategy (MSTR) surged Thursday morning ahead of the start of the new year’s trading session.
The weeks after Donald Trump’s election victory in November saw a sharp increase in cryptocurrency and other associated equities, but the rise halted in the second half of December. Numerous cryptocurrency CEOs applauded Trump’s win, stating that a second Trump term would probably have more lenient regulations than the Biden government.
Coinbase and MicroStrategy both had almost 4% increases Thursday morning, while Bitcoin increased more than 2% to $96,500. Another well-known cryptocurrency, Ethereum (ETHUSD), increased by more than 3.4% on Thursday.
In December, Bitcoin crossed the $100,000 mark for the first time.
Before reversing course, Bitcoin’s ascent peaked in December when it broke the $100,000 mark for the first time. According to some analysts, the digital currency may treble that amount by the end of 2025.
The year concluded below those peaks for both Bitcoin and the stocks, which frequently reflect the success of the cryptocurrency. In the last four trading sessions of 2024, Coinbase and MicroStrategy both saw declines, while on December 31, bitcoin increased by less than 1%.
FAQ
Coinbase and MicroStrategy are closely linked to the cryptocurrency market. As Bitcoin’s price increases, the demand for cryptocurrency-related services and assets also grows, positively impacting the stocks of companies like Coinbase and MicroStrategy.
Bitcoin’s rise past the $100,000 milestone in December 2024 was fueled by market optimism, increased adoption of cryptocurrencies, and favorable political developments, such as the re-election of Donald Trump, which raised expectations for lenient regulatory policies on cryptocurrencies.
After Donald Trump’s election victory in November 2024, cryptocurrency markets, including Bitcoin, saw a significant surge. Many cryptocurrency leaders anticipated less stringent regulations under his administration compared to the Biden government, which boosted investor confidence.
The decline in Bitcoin and associated stocks toward the end of 2024 was likely due to profit-taking by investors, year-end market corrections, and reduced trading volume during the holiday season.
Some analysts predict that Bitcoin’s price could triple its current value by the end of 2025, driven by increased institutional adoption, technological advancements, and continued demand for decentralized assets.