Bitcoin has reached a historic milestone, surpassing $100,000 for the first time. This rise was fueled by President-elect Donald Trump’s selection of Paul Atkins, a cryptocurrency advocate, to lead the U.S. Securities and Exchange Commission (SEC). The cryptocurrency hit a high of $103,801 on Thursday before settling at $103,420 by early afternoon in Singapore. Since Trump’s election victory on November 5, the cryptocurrency market has added an impressive $1.3 trillion in value, driven by expectations of relaxed regulations.
Trump’s crypto-positive nomination
Trump’s nomination of Paul Atkins, known for his stance supportive of digital assets, marks a shift from outgoing SEC Chairman Gary Gensler’s strict oversight. Traders are optimistic about Atkins’ appointment and anticipate more industry-friendly policies under his leadership.
A historic Bitcoin rally
“This rally is all about momentum,” said Jason Titman, CEO of cryptocurrency brokerage Swyftx. “Trading volumes are higher than they have been in years, and the announcement of Atkins as SEC chairman has added fuel to the fire.”
Supporters see Bitcoin’s rise above $100,000 as evidence of its value as a digital asset and hedge against inflation. Critics, however, argue that Bitcoin’s price is largely speculative and lacks intrinsic value.
“This milestone marks a turning point for Bitcoin and the cryptocurrency industry,” said Caroline Mauron, co-founder of Orbit Markets. “We expect momentum to continue in the near term.”
Record inflows for Bitcoin ETFs
US Bitcoin exchange-traded funds (ETFs) have seen unprecedented demand, with $32 billion in inflows this year. Of them, $8 billion came from Trump’s election victory, according to Bloomberg. Meanwhile, the combined trading volume of cryptocurrencies and derivatives on centralized exchanges reached a record $10 trillion in the past month, CCData reported.
Trump has pledged to loosen cryptocurrency regulations, make the United States a global leader in digital assets, and even proposed creating a national Bitcoin reserve. While the viability of a Bitcoin reserve remains uncertain, the promises have resonated in the market.
“Investors should remember that the price of no asset increases forever,” warned Josh Gilbert, market analyst at eToro. “Bitcoin momentum is strong, but it is vulnerable to big shocks.”
Mt. Gox’s $2.4 Billion Bitcoin Move
In other developments, the defunct Mt. Gox exchange transferred $2.4 billion worth of Bitcoin to an undisclosed wallet, according to Arkham Intelligence. These moves often raise fears of sell-offs by creditors, but traders seem unfazed.
Mixed results between cryptocurrencies
Other digital assets experienced mixed results. Dogecoin posted notable gains, Ethereum remained stable, and XRP saw a slight drop. Investors appear to be consolidating their funds into Bitcoin, reinforcing their dominance in the market.
Despite Bitcoin’s record-breaking performance, overall financial markets remained calm. Stock indexes and equity futures showed little movement, Treasury yields rose slightly and the dollar index was unchanged.
Bitcoin’s unprecedented rise highlights growing confidence in cryptocurrencies and anticipation of major regulatory changes under the Trump administration. As the market evolves, Bitcoin continues to capture global attention, strengthening its position as a key player in the future of finance.
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