Bitcoin reached an all-time high of $100,000, marking a major milestone in the cryptocurrency’s history. The jump in Bitcoin’s value comes amid growing optimism among investors about a more crypto-friendly regulatory environment under the incoming administration of Donald Trump, who recently won the US Presidential elections.
Bitcoin has more than doubled in value since the start of 2024 and has risen by about 45% in the last four weeks following Trump’s election victory. At 0240 GMT on Thursday, bitcoin was trading at $100,027, up 2.2% from the previous session, after briefly touching $100,277 earlier in the day.
“Key developments, including Elon Musk heading the newly established Department of Government Efficiency, plans for a dedicated White House crypto policy role, and Trump’s appointment of Paul Atkins as SEC Chair, have fuelled this remarkable rally towards this mark. With Trump’s pro-crypto agenda and Atkins’ leadership, the market is bound for friendlier reforms and wider adoption, setting Bitcoin on track to reach $120,000 in the coming weeks,” said Edul Patel, CEO and Co-founder of Mudrex.
One key factor driving bitcoin’s rally is the anticipation of policy changes under Trump’s administration. During his campaign, Trump pledged to make the United States the “crypto capital of the planet.” He also announced plans to build a national bitcoin reserve, signalling a strong personal and policy interest in digital assets.
Industry insiders are also hopeful that the change in leadership will bring an end to the stricter scrutiny faced under the current US Securities and Exchange Commission (SEC) Chair, Gary Gensler. Trump has already indicated that he will nominate Paul Atkins, a former SEC commissioner known for his involvement in crypto policy, to lead the SEC.
Experts see this shift as a positive step for the industry. “We’re witnessing a paradigm shift. Bitcoin and the entire digital asset ecosystem are on the verge of mainstream financial acceptance,” Mike Novogratz, CEO of US-based crypto firm Galaxy Digital, told Reuters.
Several crypto firms, including Ripple, Kraken, and Circle, are vying for a place on Trump’s proposed crypto advisory council. This council aims to shape the overhaul of U.S. crypto policies.
Trump’s personal interest in the sector has also stirred investor confidence. In September, he launched a crypto venture named World Liberty Financial, though details about its operations remain limited. Furthermore, reports suggest that Trump Media and Technology Group is in advanced talks to acquire the crypto trading platform Bakkt.
The approval of US-listed bitcoin exchange-traded funds (ETFs) earlier this year has also played a significant role in bitcoin’s rise. These funds, which were previously blocked by the SEC due to investor protection concerns, have allowed a wider range of investors, including institutions, to gain exposure to bitcoin. Over $4 billion has been invested in these ETFs since the election.
The surge in bitcoin’s price has had a ripple effect across related sectors. Shares in MARA Holdings, a bitcoin mining company, have risen by 65% in November alone. Options trading on BlackRock’s bitcoin ETF has also been robust, with call options—bets on the price rising—outnumbering puts at a ratio of 22 to 1.
While bitcoin’s rise is being celebrated in the crypto community, critics continue to raise concerns about the industry’s energy consumption and its history of controversies. Two years ago, the collapse of the FTX exchange and the subsequent jailing of its founder, Sam Bankman-Fried, caused significant damage to the sector’s reputation.
There are also warnings about potential market volatility. Steven McClurg, founder of Canary Capital, told Reuters, “Investors may look to take profits after this milestone, which could lead to short-term dips. However, once these sell orders are cleared, bitcoin could rise even further, possibly hitting $120,000 by Christmas.”
The Guardian UK
