Market News

(Bloomberg) -- Bitcoin notched another record high, climbing above $93,000 for the first time, with traders exuberant over President-elect Donald Trump’s rhetorical support for crypto.

The digital asset is up more than 35% in the wake of Trump’s Nov. 5 election victory. It reached a record of $93,462 on Wednesday, before paring the increase. That’s still put once fanciful price forecasts of $100,000 well within striking distance.

Trump has pledged to create a friendly regulatory framework for crypto, set up a strategic Bitcoin stockpile and make the US the global hub for the industry. A onetime crypto skeptic, Trump reversed course after digital-asset companies spent heavily during election campaigning to promote their interests.

While calling the probability of a US Bitcoin strategic reserve low, Galaxy Digital founder Michael Novogratz predicted that the price of the largest digital token could soar to $500,000 if it is enacted.

“If we get the Bitcoin reserve, as a guy who owns a lot of Bitcoin, I won’t cry,” Novogratz said during an interview Wednesday on Bloomberg Television “I think Bitcoin heads to $500,000. It is a different paradigm because it forces every other country in.”

Trump’s stance spread optimism across crypto, lifting the value of the market to an all-time peak. But thorny questions remain about whether Trump and his Republican lawmakers will be focused first on larger matters like China policy and the US economy, pushing digital-asset legislation down the pecking order.

“While we wouldn’t rule out further gains, a heck of a lot of good news is now priced in,” IG Australia Pty Market Analyst Tony Sycamore wrote in a note.

Dogecoin

One of the strongest performers recently in crypto is Dogecoin, a token promoted by billionaire Elon Musk and a meme-crowd favorite. The Shiba Inu-themed coin, also known as DOGE, rose 80% or so in the past five days.

Before the election, Musk suggested he could lead a Department of Government Efficiency, whose initials are an apparent nod to the cryptocurrency. Trump on Tuesday announced the creation of the department to cut wasteful spending, saying Musk would be its co-head. Dogecoin briefly jumped after the statement before following Bitcoin lower.