Bitcoin has soared above $100,000 for the first time, catalyzed by Republican Donald Trump’s presidential election and the anticipation of a crypto-friendly administration.
The rise marks a more than double increase in value this year, with a 45% gain in just the four weeks following Trump’s victory, bringing numerous pro-crypto lawmakers to Congress.
Mike Novogratz, CEO of Galaxy Digital, described the surge as a paradigm shift. “We’re on the brink of mainstream acceptance for digital assets,” he commented, citing growing institutional involvement and clearer regulatory pathways as key drivers.
Justin D’Anethan, a crypto analyst based in Hong Kong, echoed this sentiment. “Bitcoin crossing $100,000 is a testament to shifting finance and technology tides,” he stated.
In his campaign, Trump promoted the U.S. as a future global leader in crypto and promised to stockpile bitcoin nationally. Following his victory, Trump announced plans to nominate Paul Atkins, a former SEC commissioner and crypto policy expert, to lead the Securities and Exchange Commission, signalling a potential reduction in regulatory pressures from outgoing SEC Chair Gary Gensler.
Moreover, Trump’s involvement in crypto extends to his businesses. His media company is reportedly nearing a deal to acquire crypto trading firm Bakkt, which would further entwine his administration with the crypto sector.
The crypto market’s buoyancy is also evident in the inflow of over $4 billion into U.S.-listed bitcoin ETFs since the election, signalling robust investor confidence. This resurgence follows a significant drop in Bitcoin’s price to below $16,000 in late 2022 and a recovery spurred by the approval of Bitcoin ETFs in January.
Market analysts like Steven McClurg of Canary Capital remain optimistic, projecting Bitcoin could reach $120,000 by Christmas. “After we clear the current sell orders, the price could climb even higher and rapidly,” McClurg explained.
Read: Bitcoin Surges Past $80,000 as Trump Advocates for Cryptocurrency
This milestone, however, continues to draw scrutiny. The crypto industry has faced criticism for its environmental impact and vulnerability to crime, which was highlighted by the recent FTX scandal. Nonetheless, the sector’s resilience and the significant political and business developments suggest a dynamic phase ahead for cryptocurrencies.
