Bitcoin surged to an all-time high on Monday, extending gains driven by President-elect Donald Trump's endorsement of digital assets and his ambition to establish the US as a global leader in the sector.

The original cryptocurrency traded at US$106,215 as of 8:39 am in Singapore, having risen more than 3% earlier in Asian trading to a historic US$106,493. This surpasses the previous peak recorded on Dec 5, lifting sentiment across the broader crypto market.

Trump has signalled plans to create a crypto-friendly regulatory environment, reversing the stringent measures implemented by outgoing President Joe Biden's administration. The Republican also supports the concept of a national Bitcoin reserve, although many question the practicality of such a move.

US exchange-traded funds investing directly in Bitcoin have garnered US$12.2 billion in net inflows since Trump's electoral victory on Nov 5. Similarly, Ether-focused products have attracted $2.8 billion in subscriptions during the same period.

Bitcoin posted its longest weekly winning streak since 2021, with gains stretching over seven consecutive weeks. However, the rally has recently slowed, potentially hinting at a near-term pullback, according to Tony Sycamore, Market Analyst at IG Australia Pty, in a research note.

On Friday, Nasdaq Global Indexes announced that Bitcoin accumulator MicroStrategy Inc. would join the Nasdaq 100 Index. The company's evolution into a highly leveraged bet on Bitcoin has captivated Wall Street, as it continues to raise capital to invest billions into the digital asset.

Smaller cryptocurrencies also advanced, with Ether, XRP, and meme token Dogecoin all posting gains.

Co-founder of institutional crypto platform August Aya Kantorovich noted on Bloomberg Television that optimism for the crypto sector reflects expectations of "a much more favourable administration." She added that the upbeat sentiment is evident in growing demand for ETFs tied to digital assets.

Bloomberg