Bitcoin has soared beyond the $100,000 mark, marking a historic milestone in its volatile journey. The cryptocurrency’s rally, driven by Donald Trump’s election as U.S. President, has captivated investors and reignited optimism within the digital asset market.
The surge follows Trump’s announcement of plans to nominate cryptocurrency advocate Paul Atkins as the next chair of the Securities and Exchange Commission (SEC). Atkins, known for his pro-market stance, served as an SEC commissioner during the George W. Bush administration and has since been a prominent voice against excessive market regulation. His potential appointment signals a shift in the regulatory environment, sparking renewed enthusiasm in the crypto space.
Since Election Day on November 5, bitcoin has experienced a meteoric rise, climbing from $69,374 to an all-time high of $103,713 on Wednesday, according to CoinDesk. The cryptocurrency’s value has more than doubled this year, rebounding from its slump to under $17,000 two years ago after the collapse of the FTX exchange.
Trump’s pro-crypto stance has played a significant role in the market’s recent momentum. Once a skeptic, the President-elect has embraced digital assets, vowing to make the United States “the crypto capital of the planet” and proposing the creation of a “strategic reserve” of bitcoin. His campaign accepted cryptocurrency donations, and he courted supporters at a bitcoin conference earlier this year. Trump has also launched World Liberty Financial, a cryptocurrency venture involving his family, to further solidify his position in the industry.
While bitcoin’s rise has thrilled investors, its future remains uncertain. After peaking above $103,000, the cryptocurrency dipped to just under $102,000 early Thursday, highlighting the market’s inherent volatility. Experts are divided on what lies ahead, with some predicting continued gains while others caution about potential risks.
Crypto advocates are hopeful that Trump’s administration will foster a favorable regulatory environment. The approval of spot bitcoin exchange-traded funds (ETFs) earlier this year under current SEC Chair Gary Gensler was a significant step for the industry. These ETFs allow investors to gain exposure to bitcoin without directly purchasing the cryptocurrency and were a major driver of bitcoin’s pre-election rally.
Gensler, however, has faced criticism from the crypto industry for his stringent approach, which included penalties for companies violating securities laws. With his departure imminent, Trump’s selection of Atkins is viewed as a move toward reducing regulatory barriers, aligning with the industry’s push for legitimacy without excessive oversight.
As the crypto market continues to evolve, bitcoin’s record-breaking rally underscores the impact of political and regulatory developments on its trajectory, keeping the world’s attention firmly fixed on the ever-volatile digital asset.
