Bitcoin soared above $100,000 for the first time on Thursday, with the election of Republican Donald Trump as US president, raising hopes that his administration will create a crypto-friendly regulatory environment.
Bitcoin's value has more than doubled this year, rising about 45% in the four weeks since President Trump's landslide victory, which saw many pro-cryptocurrency members elected to Congress.
It was trading at $100,027 at 0240 GMT, up 2.2% from the previous session, after rising to $100,277 the previous day.
“We are witnessing a paradigm shift. After four years of political purgatory, Bitcoin and the entire digital asset ecosystem are about to enter the financial mainstream,” said the founder of US cryptocurrency company Galaxy Digital. said Mike Novogratz, CEO and Chief Executive Officer.
“This momentum is fueled by institutional adoption, advances in tokenization and payments, and a clearer regulatory path.”
More than 16 years after its creation, Bitcoin is on the verge of mainstream acceptance, despite a history of naysayers and controversy.
“Bitcoin passing $100,000 is more than just a milestone; it is evidence of changing trends in finance, technology and geopolitics,” said Justin Danesan, an independent cryptocurrency analyst based in Hong Kong. said.
“People who not so long ago were dismissed as fantasies now exist in reality.''
Trump embraced digital assets during his campaign, promising to make the United States “the crypto asset of the planet” and amassing a national stockpile of Bitcoin.
Cryptocurrency investors see an end to increased scrutiny under U.S. Securities and Exchange Commission Chairman Gary Gensler. The chairman announced last week that he would step down in January to coincide with President Trump's inauguration.
On Wednesday, President Trump announced his nomination of Paul Atkins to head the Securities and Exchange Commission. Atkins, a former SEC commissioner, has been involved in crypto policy as co-chair of the Token Alliance and the Digital Chamber of Commerce, which work to “develop best practices for digital asset issuance and trading platforms.”
A number of crypto companies, including Ripple, Kraken and Circle, are vying for seats on President Trump's promised Cryptocurrency Advisory Board, according to multiple digital asset industry executives, and his plans for U.S. policy. We are seeking the right to have a say in the complete review of the
Trump's companies may also have an interest in this area.
In September, he announced a new cryptocurrency business, World Liberty Financial.
Few details have been released about the business, but investors are taking it as a bullish signal of his personal interest in the space.
Trump's social media company is in talks to buy cryptocurrency trading company Bakkt, the Financial Times reported last week, citing two people familiar with the negotiations.
Trump Media and Technology Group, which operates Truth Social, is close to acquiring all of Bakkt, the FT reports.
Billionaire Elon Musk, a key ally of Trump, is also a supporter of cryptocurrencies.
Bitcoin's recovery from below $16,000 at the end of 2022 was rapid, driven by the approval of a U.S.-listed Bitcoin exchange-traded fund in January of this year.
The Securities and Exchange Commission has long sought to prevent ETFs from investing in Bitcoin, citing investor protection concerns, but this product allows more investors, including institutional investors, to gain exposure to Bitcoin. It became possible to obtain.
Since the election, more than $4 billion has flowed into U.S.-listed Bitcoin exchange-traded funds.
Joe McCann, founder and CEO of Asymmetric, a Miami-based digital asset hedge fund, said: “We've been trading essentially sideways for about seven months, but on Nov. “Shortly after, US investors resumed buying Handover Fist.”
Options on the BlackRock ETF had a strong debut in November, with call options that bet on rising prices significantly more popular than puts. McCann calculated the put-to-call ratio to be about 22-to-1.
Crypto-related stocks have soared along with Bitcoin prices, with Bitcoin miner MARA Holdings' stock price rising about 65% in November.
But this rise is not without criticism.
Two years ago, the industry was hit by a scandal that saw the collapse of the FTX cryptocurrency exchange and the jailing of founder Sam Bankman Fried.
The crypto industry has also been criticized for its high energy usage, while crypto crime remains a concern.
Market participants are waiting to see what happens now that Bitcoin has surpassed $100,000, and investors and speculators may be looking to cash in on some of the recent gains.
“But if you clear out the sell orders, prices could rise even faster,” said Stephen McClurg, founder of digital asset investment firm Canary Capital.
He said he expects the price of Bitcoin to reach $120,000 by Christmas.
