Bitcoin crossed the $100,000 milestone for the first time on Thursday, reaching $102,700 in early Asian trading. This surge comes as optimism grows over US president-elect Donald Trump’s potential policies favoring cryptocurrency deregulation when he takes office next month.
The cryptocurrency has seen a massive rally since Trump’s election victory on November 5, where he pledged to make the US the “bitcoin and cryptocurrency capital of the world.”
Bitcoin’s Growth Since Trump’s Win
- Bitcoin surged over 50% following Trump’s election.
- It has climbed an impressive 134% since the start of the year.
After reaching the $100,000 mark, Bitcoin’s rise stalled briefly, trading just below the threshold as investors awaited further triggers for renewed buying.
Key Appointment Fuels Market Optimism
A major catalyst came with Trump’s announcement of Paul Atkins, a noted cryptocurrency advocate, as the next chair of the Securities and Exchange Commission (SEC). Atkins, a former SEC commissioner and co-chairman of the Digital Chamber of Commerce, is expected to promote innovation-friendly regulations for the crypto market.
Trump stated, “Paul is a proven leader for common-sense regulations” and emphasized Atkins’ role in supporting “robust, innovative capital markets.” This move aligns with broader Republican goals for a more lenient approach to the cryptocurrency industry.
Crypto Market’s Expectations
Stephen Innes of SPI Asset Management remarked, “This strategic appointment has energized the crypto community, sparking investor confidence in a more accommodating regulatory landscape.” Similarly, Samer Hasn of XS.com highlighted that relaxed regulations could integrate cryptocurrencies further into the country’s economic system.
Trump’s Changing Stance on Bitcoin
Once a vocal critic of cryptocurrencies, Trump has since embraced them. He announced plans to launch a digital currency platform, World Liberty Financial, alongside his sons and other entrepreneurs. Additionally, Trump has formed an alliance with Elon Musk, tasking him with leading a federal efficiency initiative.
Musk, a long-time crypto proponent, reportedly invested over $100 million in Trump’s campaign and has been a vocal supporter on his social media platform, X.
Bitcoin’s Evolution and Criticism
Bitcoin, introduced in 2008 by the pseudonymous Satoshi Nakamoto, was designed to bypass traditional financial systems using a decentralized platform. The currency is “mined” by solving complex computational problems, validating transactions on a secure blockchain.
However, Bitcoin has faced criticism for its association with illicit activities, including money laundering, ransomware, and the dark web. Despite this, its growing role in financial markets and the broader economy remains undeniable.
