Bitcoin has made history by crossing the $100,000 mark for the first time, fueled by expectations that the election of Republican Donald Trump as U.S. president will usher in a more favorable regulatory environment for cryptocurrencies. The digital currency, which has more than doubled in value this year, has risen by approximately 45% in the four weeks following Trump’s victory. This surge is linked to the election of pro-crypto lawmakers, signaling a shift in the political landscape that could benefit the crypto sector.
Mike Novogratz, CEO of Galaxy Digital, called the milestone a “paradigm shift” for bitcoin and the broader digital asset ecosystem. He emphasized that institutional adoption, advancements in tokenization, and a clearer regulatory path are driving the momentum. After over 16 years since its creation, bitcoin is now on the verge of mainstream acceptance, a stark contrast to its early years marked by controversy and skepticism.
Justin D’Anethan, a Hong Kong-based crypto analyst, echoed this sentiment, describing bitcoin’s crossing of the $100,000 threshold as more than just a milestone. He remarked, “What was once dismissed as fantasy now stands as reality.” Trump’s campaign embraced digital assets, promising to make the U.S. the “crypto capital of the planet” and stockpile bitcoin for national reserves. His plans to appoint Paul Atkins, a pro-crypto advocate, to head the Securities and Exchange Commission have further buoyed investor confidence, signaling a potential end to the increased scrutiny under current SEC Chair Gary Gensler.
The crypto community is also eyeing the formation of a crypto advisory council under Trump’s administration, with companies like Ripple, Kraken, and Circle vying for a seat at the table. Additionally, Trump’s personal interest in the sector is seen as a bullish signal, with his newly launched crypto business, World Liberty Financial, and talks of acquiring the crypto trading firm Bakkt further adding to the optimism.
Bitcoin’s rapid recovery from a slump below $16,000 in late 2022 has been spurred by the approval of U.S.-listed bitcoin exchange-traded funds (ETFs), which have allowed institutional investors to gain exposure to the digital currency. Over $4 billion has flowed into U.S.-listed bitcoin ETFs since the election. While critics point to issues like crypto-related crime and the industry’s energy consumption, the rally has been accompanied by soaring stock prices for crypto-related companies.
As bitcoin continues to rise, many market participants are eagerly awaiting its next move, with predictions suggesting it could reach $120,000 by Christmas, further solidifying its place in the financial mainstream.
