Bitcoin surpassed the $100,000 mark on Thursday, reaching a new high as the election of Republican Donald Trump as the next president of the United States fueled optimism that his administration would foster a regulatory environment favorable to cryptocurrencies.
This year, Bitcoin has more than doubled in value, and in the four weeks following Trump’s decisive election win, it has risen by approximately 45%. Along with this, numerous pro-cryptocurrency lawmakers have secured positions in Congress.
The cryptocurrency was last recorded at $100,027 as of 0240 GMT, marking a 2.2% increase from the previous session. It had earlier peaked at $100,277.
“This momentum is fueled by institutional adoption, advancements in tokenization and payments, and a clearer regulatory path.”
Despite its turbulent past, with critics and controversies surrounding it, Bitcoin seems poised to enter the mainstream. Over 16 years since its inception, its increasing acceptance signals a transformation in the financial and technological landscape.
“Bitcoin crossing $100,000 is more than just a milestone; it’s a testament to shifting tides in finance, technology, and geopolitics,” commented Justin D’Anethan, an independent crypto analyst based in Hong Kong.
“The figure not that long ago dismissed as fantasy, stands as a reality.”
During his campaign, Trump voiced strong support for digital currencies, even promising to turn the United States into the “crypto capital of the planet” and to establish a national reserve of bitcoin.
Crypto investors are hopeful that the heightened regulatory scrutiny under the leadership of US Securities and Exchange Commission Chair Gary Gensler will end, particularly since Gensler announced he would step down when Trump assumes office in January.
On Wednesday, Trump revealed plans to nominate Paul Atkins to lead the SEC. Atkins, a former SEC commissioner, has been actively involved in the crypto sector as the co-chair of the Token Alliance, an organization dedicated to shaping best practices for digital asset issuance and trading platforms. He is also connected to the Chamber of Digital Commerce.
A number of crypto companies, including Ripple, Kraken, and Circle, are vying for representation on Trump’s anticipated crypto advisory council, seeking influence on his proposed changes to US policy, according to several industry insiders.
Trump’s business interests may also have ties to the cryptocurrency space.
In September, he introduced a new crypto business, World Liberty Financial.
Although few details about the business are available, his personal involvement in the industry has been interpreted by investors as a positive sign.
Reports from last week revealed that Trump’s social media company is in advanced negotiations to acquire crypto trading firm Bakkt, according to sources familiar with the discussions.
Trump Media and Technology Group, the parent company of Truth Social, is nearing an all-stock acquisition deal with Bakkt, according to the Financial Times.
Billionaire Elon Musk, a major Trump ally, is also known for his enthusiasm for cryptocurrencies.
Bitcoin’s swift recovery from a dip below $16,000 in late 2022 has been largely driven by the approval of bitcoin exchange-traded funds (ETFs) listed in the US this January.
Previously, the Securities and Exchange Commission had blocked attempts to launch bitcoin ETFs, citing concerns about investor protection. However, these products have since allowed a broader range of investors, including institutions, to engage with bitcoin.
Following the election, US-listed bitcoin ETFs have attracted over $4 billion in investment.
“We were trading basically sideways for about seven months, then immediately after November 5, US investors resumed buying hand-over-fist,” said Joe McCann, CEO and founder of Asymmetric, a digital assets hedge fund based in Miami.
The options market for BlackRock’s ETF saw a strong debut in November, with call options – bets that the price will rise – significantly outpacing puts. McCann noted the put-to-call ratio was about 22 to 1.
As bitcoin’s value surged, crypto-related stocks also experienced strong growth, with shares in bitcoin mining company MARA Holdings jumping nearly 65% in November.
However, the rapid rise has not been without its critics.
The cryptocurrency industry is still recovering from the fallout caused by the 2022 collapse of the FTX crypto exchange and the imprisonment of its founder, Sam Bankman-Fried.
The sector continues to face criticism for its substantial energy consumption, while issues of crypto-related crime also remain a concern.
Market participants are carefully monitoring the future movement of bitcoin now that it has crossed the $100,000 threshold. Investors and traders might look to secure some of their recent profits.
“But once we flush out those sell orders, this could go higher still, and very rapidly,” said Steven McClurg, founder of Canary Capital, a digital assets investment firm.
{Matzav.com}
