Bitcoin has come within a whisker of closing above $US100,000 for the first time on Thursday as the election of Republican Donald Trump as US president spurred expectations that his administration will create a friendly regulatory environment for cryptocurrencies.

The world's largest cryptocurrency was trading between $US98,000 and $US99,000 in late afternoon trading in the US on Thursday, after briefly touching $US99,073.

Bitcoin has more than doubled in value this year and is up about 40% in the two weeks since Trump was voted in as the next US president and a slew of pro-crypto lawmakers were elected to Congress.

Trump embraced digital assets during his campaign, promising to make the United States the "crypto capital of the planet" and to accumulate a national stockpile of bitcoin.

Crypto investors see an end to increased scrutiny under US Securities and Exchange Commission Chair Gary Gensler, whom Trump has said he will replace.

Trump also unveiled a new crypto business, World Liberty Financial, in September. Although details about the business have been scarce, investors have taken his personal interest in the sector as a bullish signal.

Billionaire Elon Musk, a major Trump ally, is also a proponent of cryptocurrencies.

Over 16 years after its creation, bitcoin appears on the cusp of mainstream acceptance.

"Everyone who's bought bitcoin at any point in history is currently in profit," Alicia Kao, managing director of crypto exchange KuCoin, said.

"But those who bought it early, when there were significant obstacles to doing so and there was the might of the world's financial and governmental forces intent on crushing it, are the real winners. Not because they're rich, but because they're right."

Bitcoin's rebound from a slide below $US16,000 in late 2022 has been rapid, boosted by the approval of US-listed bitcoin exchange-traded funds in January this year.

The Securities and Exchange Commission had long attempted to block ETFs from investing in bitcoin, citing investor protection concerns, but the products have allowed more investors, including institutional investors, to gain exposure to bitcoin.

Funds rush into crypto after US election

More than $US4 billion has streamed into U.S.-listed bitcoin exchange-traded funds since the election. This week, there was a strong debut for options on BlackRock's ETF IBIT, with call options — bets on the price going up — more popular than puts.

"There is a persistent bid in the market," said Joe McCann, CEO and founder of Asymmetric, a digital assets hedge fund in Miami. "$US100,000 is a foregone conclusion."

Crypto-related stocks have soared along with the bitcoin price and shares in bitcoin miner MARA Holdings were up nearly 2.3% on Thursday (US time).

"Once you break out to new highs, you attract a lot of new capital," John LaForge, head of real asset strategy at Wells Fargo Investment Institute, said.

"It's like gold in the 1970s, where this new high is in a price discovery mode. You don't know how high it's going to go," he said.

Yet the rise is not without critics.

Two years ago, the industry was wracked by scandal with the collapse of the FTX crypto exchange and the jailing of its founder Sam Bankman-Fried.

The cryptocurrency industry also has been criticized for its energy usage, with miners under scrutiny over their potential impact on power grids and greenhouse gas emissions due to their energy-intensive operations.

Crypto crime also remains a concern, with an analysis by crypto researchers Chainalysis finding that at least $US24.2 billion worth of crypto was sent to illicit wallet addresses last year, including addresses identified as sanctioned or linked to terrorist financing and scams.

Reuters