Bitcoin makes its first breach of $94,000

Bitcoin surged to an all-time high above $94,000 after reports revealed that Donald Trump's social media company was in discussions to acquire crypto trading firm Bakkt. This news fueled optimism for a cryptocurrency-friendly environment under Trump's incoming administration.

Bitcoin, the largest and most recognized cryptocurrency, has more than doubled in value this year. It was last trading at $92,104 in Asian hours on Wednesday, following a record high of $94,078 just before the previous session's close.

According to the Financial Times, citing sources familiar with the matter, Trump Media and Technology Group, the company behind Truth Social, is nearing an all-stock acquisition of Bakkt, a company supported by Intercontinental Exchange, the parent company of the New York Stock Exchange (NYSE: ICE).

Tony Sycamore, a market analyst at IG, noted that Bitcoin's rally to a new high was driven by both the Trump deal speculation and traders capitalizing on the launch of options trading for BlackRock’s Bitcoin ETF on Nasdaq.

Cryptocurrency prices have surged since the November 5 U.S. election, as traders anticipate that President-elect Trump's pledge to support digital assets will lead to a more favorable regulatory environment and revitalize Bitcoin, which had been stagnant for several months.

This surge in interest has propelled the global cryptocurrency market to a record value of over $3 trillion, according to CoinGecko, an analytics and data aggregator.

Chris Weston, head of research at Australian online broker Pepperstone, emphasized that strong buying pressure is supporting Bitcoin’s rise, and he believes that another upward push could attract fresh buyers eager to invest in assets showing strong momentum.

Paraphrasing text from "Reuters" all rights reserved by the original author.