Bitcoin Briefly Surges Past $93,000 on Trump’s Pro-Crypto Agenda and Fed Rate Speculation

Bitcoin briefly reached an all-time high of $93,462 on Thursday, fueled by expectations of further interest rate cuts by the Federal Reserve and President-elect Donald Trump’s supportive stance on cryptocurrency. The digital asset, which has surged by 33% since Trump’s election victory on November 5, experienced a quick pullback, trading at $89,974 by mid-morning in Singapore.

Speculators are watching closely to determine whether Trump’s pro-crypto agenda will drive Bitcoin further toward the anticipated $100,000 mark or if profit-taking will dampen its upward momentum. “After such an extended move, it’s reasonable to expect a mix of opinions and increased two-way flows,” commented Chris Weston, head of research at Pepperstone Group. Despite some volatility, Weston noted that Bitcoin’s trend remains bullish “for now.”

Market sentiment was further impacted by U.S. inflation data released on Wednesday, which met analyst expectations and led traders to bet on another quarter-point rate cut from the Fed in December. Trump’s promise to create a crypto-friendly regulatory environment, establish a strategic Bitcoin stockpile, and position the U.S. as a global crypto hub has also bolstered investor optimism.

While crypto advocates are enthusiastic, some industry leaders remain cautious. Billionaire Michael Novogratz, founder of Galaxy Digital, told Bloomberg Television that while a U.S. Bitcoin reserve is unlikely, if it materializes, Bitcoin could potentially reach $500,000. The ongoing rally has also driven record trading volumes and inflows in U.S. Bitcoin exchange-traded funds, with companies like MicroStrategy benefiting from the crypto boom.