Bitcoin, the world’s most prominent digital currency, surged beyond the $100,000 mark for the first time on Wednesday, driven by growing optimism among investors about President-elect Donald Trump’s crypto-friendly policy agenda.
The milestone marks a 40% increase in Bitcoin’s value in just four weeks, as the digital asset gained momentum following Trump’s election victory. The rally peaked at $103,853 after Trump announced his choice of Paul Atkins, a pro-crypto former regulator, to lead the Securities and Exchange Commission (SEC). During his campaign, Trump shifted from his earlier skepticism of Bitcoin and vowed to “end Joe Biden’s war on crypto.”
The cryptocurrency sector has responded enthusiastically to the incoming administration, signaling a significant shift from its early days as a rebellious alternative to mainstream finance. Bitcoin’s meteoric rise has amplified the wealth of its early adopters, propelling the digital asset class to a valuation exceeding $3 trillion.
“I find it very ironic,” remarked Tim Swanson, head of market intelligence at Clearmatics, a blockchain firm based in London. “The whole purpose of Bitcoin was to create an alternative payment infrastructure outside of traditional finance and government surveillance. Now some Bitcoiners are looking to embrace governments, or even get subsidies.”
Trump’s crypto agenda includes plans to establish a strategic national reserve for Bitcoin, a policy that could further boost its price by reducing available supply. Additionally, his commitment to easing regulatory constraints has been welcomed by crypto advocates. This policy shift follows the anticipated resignation of SEC Chair Gary Gensler on Inauguration Day. Gensler, a staunch critic of digital currencies, has previously warned of widespread fraud and manipulation in the crypto market.
The global embrace of Bitcoin continues to grow, with nations such as Bhutan and El Salvador holding significant reserves of the cryptocurrency. Major corporations, including Tesla and MicroStrategy, have also amassed substantial Bitcoin holdings. These large-scale accumulations, combined with Bitcoin’s inherent supply cap of 21 million coins, are viewed as bullish indicators for its price trajectory.
Bitcoin’s journey from its inception as a niche innovation to its current status as a trillion-dollar asset underscores its growing acceptance in both political and financial circles. As the cryptocurrency sector aligns more closely with traditional institutions, its influence in shaping the future of global finance appears poised to expand.
