Bitcoin made headlines this week with its spectacular rally, reaching six digits for the first time in history. However, profit-taking caused it to fall below the $100,000 mark early Friday as traders weathered the token's dramatic swings and notoriously heart-breaking volatility.
Amid volatile volatility, Bitcoin soared to an all-time high of $103,700 per token yesterday before falling more than 6% to end the day at $96,900 per coin, down 1.6%. finished.
What is driving this historic rally that has been making ripples for weeks? President-elect Donald Trump may have the answer. He is assembling a strong team of crypto advocates to lead the White House effort. Earlier this week, President Trump nominated former SEC Chairman Paul Atkins to replace current SEC Chairman Gary Gensler.
Bitcoin’s meteoric rise has sent shockwaves through the industry as well as the industry as a whole. Once Bitcoin's price topped the $100,000 mark, traders moved away from crypto-related stocks and joined in on the rise in the flagship digital currency.
As a result, the stock prices of companies that use virtual currencies extensively have suffered. MicroStrategy stock fell 4.8%, while Coinbase fell 3.1%. Both stocks started the day higher but stopped rising as the session progressed.
What makes MicroStrategy stand out? It's a bright sample of what happens when companies go all-in on Bitcoin. Since its first cryptocurrency investment in 2020, the company has amassed a staggering 402,000 Bitcoins in its treasury, worth around $40 billion. Notably, the average purchase price per Bitcoin is $57,000, with half of that value representing pure profit.
This bold strategy has sent MicroStrategy stock into overdrive, soaring nearly 500% this year to a market cap of $90 billion. Founder Michael Saylor continues to focus on Bitcoin, ignoring all other tokens in true maximalist fashion.
As President Trump builds his crypto dream team, is it only a matter of time before Saylor is tapped for a pivotal government role in shaping crypto policy?
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