By Callum Keown

Bitcoin hit a new record high above $94,000 as Donald Trump's favorable stance on crypto continued to fuel the rally.

The world's largest cryptocurrency reached $94,057 overnight, according to FactSet data, before falling back to trade at around $93,500 early Wednesday. Crypto-related stocks, Coinbase Global, MicroStrategy and Robinhood Markets were all higher in premarket trading. However, Trump Media & Technology Group shares, trading under the tick DJT, fell 1.1%.

The stars appear to be aligning for the crypto industry ahead of the president-elect's second term in office. The latest push higher came after Trump Media held talks to buy crypto trading platform Bakkt, the Financial Times reported.

Bakkt said it was the company's policy not to comment on market rumors or speculation, in a statement Tuesday.

Howard Lutnick, Trump's nomination for commerce secretary, is something of a crypto supporter too, which gave fresh impetus to the rally Tuesday. It was also the first day of options trading in the iShares Bitcoin Trust--the biggest Bitcoin exchange-traded fund as investors looked to benefit from the recent rally.

Those factors, on top of expectations that Trump will ease regulation on the crypto sector, paved the way for the new record. The $100,000 milestone is now in sight.

"Bitcoin's new all-time high reflects a milestone in its price and a fundamental shift in its political and economic acceptance," XS.com analyst Antonio Di Giacomo said in a note Wednesday. "With factors like U.S. government support, increased institutional interest, and the potential use of Bitcoin by sovereign nations, the path to $100,000 seems increasingly plausible," he added.

Write to Callum Keown at callum.keown@dowjones.com

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November 20, 2024 06:43 ET (11:43 GMT)

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