Bitcoin has soared to an unprecedented high of $100,000, marking a historic moment for the cryptocurrency. The surge reflects growing investor confidence in a more crypto-friendly regulatory environment, anticipated under Donald Trump’s incoming administration following his recent US Presidential election victory.
The cryptocurrency has more than doubled in value since the start of 2024 and has surged by approximately 45% in the four weeks since Trump’s win. As of 0240 GMT on Thursday, Bitcoin was trading at $100,027, up 2.2% from the previous session, having briefly touched $100,277 earlier in the day.
The rally has been driven by significant developments, including Trump’s appointment of key crypto advocates. Notably, Elon Musk has been named to lead the newly created Department of Government Efficiency, while Paul Atkins, a former SEC commissioner known for his crypto-friendly stance, is expected to head the US Securities and Exchange Commission (SEC).
“Trump’s pro-crypto agenda, combined with Atkins’ leadership, signals a new era for digital asset adoption,” said Edul Patel, CEO and Co-founder of Mudrex. Patel predicts Bitcoin could climb further, reaching $120,000 within weeks.
During his campaign, Trump vowed to make the United States the “crypto capital of the planet,” pledging to establish a national bitcoin reserve. This ambitious vision has bolstered confidence in the sector and galvanised investors.
Trump’s administration is expected to depart from the stringent scrutiny imposed by current SEC Chair Gary Gensler, whose tenure has been marked by clashes with crypto firms. Industry leaders are optimistic that Atkins’ appointment will pave the way for reforms conducive to growth.
“Bitcoin and the entire digital asset ecosystem are on the brink of mainstream financial acceptance,” said Mike Novogratz, CEO of Galaxy Digital, reflecting the sentiment within the industry.
Several firms, including Ripple, Kraken, and Circle, are reportedly vying for roles in Trump’s proposed crypto advisory council, which aims to shape the nation’s digital asset policies. Trump’s personal ventures in the sector, including the launch of World Liberty Financial, further underline his commitment to the industry.
The approval of US-listed Bitcoin exchange-traded funds (ETFs) earlier this year has played a pivotal role in Bitcoin’s rise. Previously blocked by the SEC, these ETFs have opened the market to institutional investors, with over $4 billion poured into such funds since Trump’s victory.
The surge has also impacted related sectors. Shares in MARA Holdings, a prominent Bitcoin mining company, jumped 65% in November, while trading activity in BlackRock’s Bitcoin ETF has been robust, with bullish call options significantly outpacing bearish puts.
Despite the celebration, the industry faces ongoing scrutiny. Critics continue to raise concerns over Bitcoin’s environmental impact and its tumultuous history, including the collapse of FTX and the conviction of its founder, Sam Bankman-Fried, which tarnished the sector’s reputation two years ago.
Market analysts have also warned of potential volatility. “After this milestone, some investors may cash in, causing short-term dips,” said Steven McClurg, founder of Canary Capital. “However, once sell orders stabilise, Bitcoin could climb higher, potentially reaching $120,000 by Christmas.”
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