Bitcoin soared past the $100,000 milestone on Thursday, fueled by expectations that US President-elect Donald Trump’s administration will usher in a crypto-friendly regulatory era. This landmark comes just weeks after Trump’s sweeping election victory, which also saw several pro-crypto lawmakers secure seats in Congress.
Bitcoin, which has more than doubled in value this year, has surged by 45% in the four weeks since Trump’s win. Industry leaders are hailing this as a pivotal moment for the digital asset ecosystem.
“We’re witnessing a paradigm shift,” said Mike Novogratz, CEO of Galaxy Digital. “Institutional adoption, advancements in tokenization and payments, and a clearer regulatory path are propelling cryptocurrencies into the financial mainstream.”
Trump has positioned himself as a champion of digital assets, vowing to make the U.S. the “crypto capital of the planet” and even proposing a national stockpile of bitcoin. His campaign promises have invigorated investors and industry stakeholders, marking a stark contrast to the outgoing administration’s increased scrutiny under SEC Chair Gary Gensler.
Trump has announced plans to nominate Paul Atkins, a crypto advocate and former SEC commissioner, to lead the agency. Atkins, who co-chairs the Token Alliance and is affiliated with the Chamber of Digital Commerce, is expected to streamline crypto policy and foster innovation.
Crypto firms like Ripple, Kraken, and Circle are eagerly vying for positions on Trump’s proposed crypto advisory council, signaling a race to influence U.S. crypto policy.
“Bitcoin crossing $100,000 is more than just a milestone; it’s a testament to shifting tides in finance, technology, and geopolitics,” said Justin D’Anethan, a crypto analyst.
Trump’s personal involvement in the sector has also drawn attention. His newly launched crypto venture, World Liberty Financial, has been touted as a bullish signal, though details remain sparse.
Trump’s social media company is in advanced talks to buy crypto 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 close to an all-stock acquisition of Bakkt, according to the FT report.
Billionaire Elon Musk, a major Trump ally, is also a proponent of cryptocurrencies.
Bitcoin’s rebound from a slide below $16,000 in late 2022 has been rapid, boosted by the approval of U.S.-listed bitcoin exchange-traded funds in January this year.
The Securities and Exchange Commission had long attempted 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 bitcoin.
More than $4 billion has streamed into U.S.-listed bitcoin exchange-traded funds since the election.
“We were trading basically sideways for about seven months, then immediately after November 5, U.S. investors resumed buying hand-over-fist,” said Joe McCann, CEO and founder of Asymmetric, a Miami digital assets hedge fund.
There was a strong debut for options on BlackRock’s ETF in November with call options – bets on the price going up – substantially more popular than puts. McCann calculated the put to call ratio at about 22 to one.
Crypto-related stocks have soared along with the bitcoin price, with shares in bitcoin miner MARA Holdings up around 65% in November.
Yet the rise is not without critics.
Two years ago, the industry was wracked by scandal with the collapse of the FTX crypto exchange and the jailing of its founder Sam Bankman-Fried.
(With inputs from Reuters)