Bitcoin’s price smashed through $100,000 late Wednesday night, setting a new all-time high that has Wall Street analysts excited.
The apex crypto, which peaked at $103,844 before pulling back slightly to $101,000, is now being hailed as a key indicator for broader market trends. Fundstrat’s Tom Lee believes it signals a bigger move ahead for the U.S. stock market, which is already seeing record highs.
Bitcoin is now up more than 140% this year and has surged 45% since the U.S. election. Investors are piling in, betting that President-elect Donald Trump’s administration will continue to deliver on its promises to support the crypto industry.
Lee predicts the S&P 500 could climb to 6,300 before the year’s end, urging investors to buy during market dips. “Investors are pro-risk,” he said.
Trump’s pro-crypto agenda drives market confidence
Trump has wasted no time reassuring crypto investors. On Wednesday, he announced his plan to nominate Paul Atkins as the next chair of the Securities and Exchange Commission (SEC). Atkins, a well-known crypto advocate, is expected to roll back the strict enforcement tactics of outgoing SEC Chair Gary Gensler.
Under him, the SEC adopted a regulation-by-enforcement strategy that made the crypto industry a prime target for fines and lawsuits. Trump’s decision to nominate Atkins aligns with his campaign promise to overhaul crypto regulations and launch a strategic national crypto stockpile.
The news electrified Bitcoin enthusiasts. Trump even took to Truth Social Thursday morning to celebrate the milestone. “You’re welcome,” he posted, crediting his campaign promises and policies for helping Bitcoin reach $100,000. Trump added that this is just the beginning.
Tom Lee sees Bitcoin’s rally as a reflection of investor confidence in Trump’s pro-business and deregulation agenda. Small-cap stocks are also expected to benefit from the Federal Reserve’s interest rate cuts, which are likely to boost liquidity and drive more risk-taking.
Stock markets ride the bullish wave
Stock futures traded near flat levels Friday morning as investors awaited November’s labor market data. Futures tied to the Dow Jones Industrial Average dipped 0.1%, while S&P 500 and Nasdaq 100 futures remained steady.
Analysts expect the nonfarm payrolls report to show 214,000 new jobs in November, a sharp increase from October’s dismal 12,000. This labor market strength is likely to play a role in the Federal Reserve’s upcoming December meeting, where policymakers will decide on interest rates.
Despite the flat trading session, this week has been positive for equities. The S&P 500 is up 0.7%, while the tech-heavy Nasdaq Composite has gained 2.5%. The Dow, however, is down 0.3% as profit-taking continues in some sectors. Meanwhile, corporate earnings are adding fuel to the bullish sentiment.
Once dismissed as a speculative bubble, the cryptocurrency is now seen as a serious asset class. Institutional investors are increasingly embracing Bitcoin, while governments are reevaluating their regulatory stances.
For crypto enthusiasts, Bitcoin’s ascent to $100,000 feels like vindication after years of boom-and-bust cycles and resistance from traditional financial institutions.
Land a High-Paying Web3 Job in 90 Days: The Ultimate Roadmap
