- 45% increase in the four weeks after Trump’s victory in the US election.
- Trump to nominate crypto supporter Paul Atkins to head SEC
- Market Eyes Potential Bitcoin Price of $120,000 by Christmas
Bitcoin topped $100,000 for the first time on Thursday as the election of Republican Donald Trump as president of the United States fueled expectations that his administration would create a friendlier regulatory environment for cryptocurrencies.
Bitcoin has more than doubled in value this year and is up nearly 45 percent in the four weeks since Trump’s election victory, which also elected pro-crypto lawmakers to Congress.
It last traded at $100,027 by 0240 GMT, up 2.2% in the previous session, after earlier rising to $100,277.
Mike Novogratz, founder and CEO of US crypto firm Galaxy Digital, said, “We are witnessing a paradigm shift. After four years of political refinement, Bitcoin and the entire digital asset ecosystem are on the verge of entering the financial mainstream. ”
“This momentum is fueled by institutional adoption, advances in tokenization and payments, and a clear regulatory path.”
More than 16 years after its creation, bitcoin appears on the brink of mainstream acceptance, despite its history of naysayers and controversy.
“Bitcoin crossing $100,000 is more than just a milestone; it’s evidence of a wave of change in finance, technology, and geopolitics,” said Justin D’Anthon, an independent crypto analyst based in Hong Kong.
“Figures that were dismissed as fantasy not long ago stand as fact.”
Trump embraced digital assets during his campaign, promising to make America the “crypto capital of the planet” and amass a national bitcoin reserve.
Crypto investors are seeing an end to increased scrutiny under US Securities and Exchange Commission Chair Gary Gensler, who said last week that he would step down when Trump takes office in January.
On Wednesday, Trump said he would nominate Paul Atkins to run the Securities and Exchange Commission. Atkins, a former SEC commissioner, has been involved in crypto policy as co-chair of the Token Alliance, which “develops best practices for digital asset issuance and trading platforms,” and of the Chamber of Digital Commerce. Works for
According to several digital asset industry executives, several crypto companies including Ripple, Kraken and Circle are actively vying for a seat on Trump’s promised Crypto Advisory Council, which is part of his planned overhaul of US policy. Want a position.
Trump’s businesses may also participate in this sector. It unveiled a new crypto business world Liberty Financial in September. While details about the business are scarce, investors have taken his personal interest in the sector as a bullish sign.
Trump’s social media company is in advanced talks to buy crypto trading firm Bucket. Financial Times reported last week, citing two people with knowledge of the talks.
Trump Media and Technology Group, which runs Truth Social, is close to acquiring all of Buckett’s stock, according to FT Report
Billionaire Elon Musk, a major Trump ally, is also a supporter of cryptocurrencies.
Bitcoin has rebounded sharply from a slide below $16,000 in late 2022, boosted by the approval of US-listed bitcoin exchange-traded funds in January this year.
The Securities and Exchange Commission has long sought to prevent ETFs from investing in bitcoin, citing investor protection concerns, but the products have allowed more investors, including institutional investors, to buy bitcoin. Allowed to get exposure.
More than $4 billion has moved into U.S.-listed bitcoin exchange-traded funds since the election.
“We were basically trading for about seven months, then right after Nov. 5, U.S. investors started buying handover fist again,” said Joe McCann, CEO and founder of Asymmetric, a Miami-based digital assets hedge fund said.
BlackRock’s ETF had a strong debut in November with call options — bets on the price going up — considerably more popular than puts. McCann calculated a put-to-call ratio of about 22 to one.
Crypto-related stocks have rallied along with bitcoin’s price, with shares of bitcoin miner Mara Holdings up nearly 65 percent in November.
Yet the rise is not without its critics.
Two years ago, the industry was rocked by scandal with the collapse of the FTX crypto exchange and the jailing of its founder, Sam Banksman Freud.
The cryptocurrency industry has also been criticized for its massive energy consumption, while cryptocrime is also a concern.
Market participants are keeping a close eye on what happens now that Bitcoin has broken above $100,000, with investors and speculators potentially looking to pocket some of their recent gains.
“But once we get those sell orders out, it can grow much, much faster,” said Steven McClurg, founder of digital asset investment firm Canary Capital. He said he expects bitcoin to hit $120,000 by Christmas.