Bitcoin Hits $100,000 as Trump’s Crypto-Friendly Agenda Boosts Market

 

Bitcoin surpassed $100,000 for the first time on Thursday, driven by the expectation that President-elect Donald Trump's administration will foster a cryptocurrency-friendly regulatory environment. Bitcoin has more than doubled in value this year and has gained roughly 45% in the four weeks following Trump’s election victory, which also saw the rise of pro-crypto lawmakers in Congress.

As of 0240 GMT, Bitcoin was trading at $100,027, up 2.2% from the previous session, having earlier peaked at $100,277.

Mike Novogratz, CEO of crypto firm Galaxy Digital, described the moment as a "paradigm shift," citing institutional adoption, advancements in tokenization and payments, and a clearer regulatory framework. After more than 16 years since its creation, Bitcoin seems to be on the verge of mainstream acceptance despite its controversial past.

Justin D'Anethan, an independent crypto analyst, noted that Bitcoin’s crossing of $100,000 is a testament to shifting financial, technological, and geopolitical dynamics, and what was once seen as a fantasy has now become a reality.

Trump, who has supported digital assets, pledged to make the U.S. the "crypto capital of the planet" during his campaign, and crypto investors are optimistic about the reduction of scrutiny under SEC Chairman Gary Gensler, who is set to step down in January. Trump has also announced plans to nominate Paul Atkins to run the SEC. Atkins, who has been involved in crypto policy, is seen as a favorable pick by industry players.

Several crypto firms, including Ripple, Kraken, and Circle, are vying for a spot on Trump’s crypto advisory council. Trump's involvement in the sector extends to his new crypto business, World Liberty Financial, and the potential acquisition of the crypto trading firm Bakkt by his social media company, Truth Social.

Elon Musk, a prominent Trump ally, is also a major cryptocurrency advocate. Bitcoin's rapid rebound from a slump below $16,000 in late 2022 has been fueled by the approval of U.S.-listed Bitcoin exchange-traded funds (ETFs), attracting both retail and institutional investors.

Over $4 billion has flowed into U.S.-listed Bitcoin ETFs since the election. Joe McCann, CEO of digital assets hedge fund Asymmetric, noted that after several months of sideways trading, U.S. investors began purchasing Bitcoin heavily post-November 5. The debut of BlackRock’s Bitcoin ETF options in November also showed a strong preference for call options, signaling investor optimism.

Despite Bitcoin’s price surge, there are critics who point to concerns about its energy consumption and the potential for crypto crime, citing the recent FTX exchange collapse and the jailing of its founder Sam Bankman-Fried.

As Bitcoin crosses the $100,000 mark, market participants are watching closely to see if investors will cash in on recent gains. However, Steven McClurg, founder of digital asset investment firm Canary Capital, predicts that after selling pressure subsides, Bitcoin could rise further, potentially reaching $120,000 by Christmas.

 

 

 

 

 

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author.