- An increase of 45% in four weeks after Trump’s victory in the American elections.
- Trump will nominate pro-crypto Paul Atkins as SEC chairman.
- The market is looking at a potential price of $120,000 in bitcoin by Christmas.
Bitcoin surpassed $100,000 for the first time on Thursday, as Republican Donald Trump’s election as US president raised hopes that his administration would create a favorable regulatory environment for cryptocurrencies.
Bitcoin’s value has more than doubled this year and increased by around 45% in the four weeks following Trump’s resounding election victory, which also saw a large number of pro-crypto lawmakers elected to Congress.
It last traded at $100,027 at 0240 GMT, up 2.2% from the previous session, having hit an earlier high of $100,277.
“We are witnessing a paradigm shift. After four years of political purgatory, bitcoin and the entire digital asset ecosystem are poised to enter the financial mainstream,” said Mike Novogratz, founder and CEO of American crypto company Galaxy Digital.
“This momentum is fueled by institutional adoption, advancements in tokenization and payments, and a clearer regulatory path.”
More than 16 years after its creation, bitcoin appears on the verge of mainstream acceptance, despite naysayers and a history of controversy.
“Bitcoin crossing $100,000 is more than just a milestone; it’s a testament to evolving trends in finance, technology and geopolitics,” said Justin D’Anethan, a independent crypto analyst based in Hong Kong.
“This figure, not long ago considered a fantasy, has become a reality.”
Trump embraced digital assets during his campaign, promising to make the United States the “crypto capital of the planet” and amass a national stockpile of bitcoin.
Crypto investors are seeing an end to increased scrutiny from U.S. Securities and Exchange Commission Chairman Gary Gensler, who said last week he would resign in January when Trump takes office.
On Wednesday, Trump announced he would nominate Paul Atkins to head the Securities and Exchange Commission. Atkins, a former SEC commissioner, has been involved in crypto policy as co-chair of the Token Alliance, which works to “develop best practices for digital asset issuances and trading platforms,” and the Chamber of Digital Commerce.
Many crypto companies, including Ripple, Kraken and Circle, are jostling for a seat on Trump’s promised crypto advisory board, seeking a say in his planned overhaul of U.S. policy, according to several crypto industry executives. digital assets.
Trump’s companies may also have interests in this sector. He unveiled a new crypto company, World Liberty Financial, in September. Although details about the company are scarce, investors have taken his personal interest in the sector as a bullish signal.
Trump’s social media company is in advanced talks to buy cryptocurrency trading firm Bakkt, the Financial Times reported last week, citing two people with knowledge of the talks.
Trump Media and Technology Group, which operates Truth Social, is set to acquire all of Bakkt’s shares, according to the FT report.
Billionaire Elon Musk, a major Trump ally, is also a supporter of cryptocurrencies.
Bitcoin’s rebound from a fall below $16,000 in late 2022 has been rapid, spurred by the approval of US-listed Bitcoin exchange-traded funds in January this year.
The Securities and Exchange Commission has long tried 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 the bitcoin.
Since the election, more than $4 billion has flowed into US-listed Bitcoin exchange-traded funds.
“We traded basically sideways for about seven months, and then immediately after November 5, U.S. investors started buying hands again,” said Joe McCann, CEO and founder of Asymmetric, an asset hedge fund. Miami Digital.
Options on the BlackRock ETF had a strong start in November, with calls (bets on price increases) significantly more popular than puts. McCann calculated the put/call ratio at around 22 to one.
Crypto-related stocks have soared along with the price of bitcoin, with shares of bitcoin miner MARA Holdings rising about 65% in November.
However, this increase is not without criticism.
Two years ago, the industry was rocked by scandal with the collapse of crypto exchange FTX and the imprisonment of its founder Sam Bankman-Fried.
The cryptocurrency industry has also been criticized for its massive energy consumption, while crypto crime also remains a concern.
Market participants are closely watching what happens now that bitcoin has surpassed $100,000, with investors and speculators perhaps looking to pocket some of their recent gains.
“But once we eliminate these sell orders, it could go up again and very quickly,” said Steven McClurg, founder of Canary Capital, a digital asset investment firm. He said he expected the price of Bitcoin to reach $120,000 by Christmas.