Bitcoin surpassed the $100,000 mark for the first time on Thursday, fueled by expectations that the newly elected Republican President Donald Trump will create a cryptocurrency-friendly regulatory environment. As of 9:30 PM ET, Bitcoin was trading at $102,724, up 7.1 percent from its previous session.
The cryptocurrency has more than doubled in value this year, gaining nearly 45% in the four weeks following Trump's decisive election victory, which also saw several pro-crypto lawmakers coming into Congress. The milestone was achieved by Bitcoin on a day all three major U.S. indexes hit new all-time closing highs. The Dow, S&P 500 and Nasdaq closed up 0.7%, 0.6% and 1.3% higher on Wednesday.
Bitcoin on a Rally
More than 16 years after its inception, Bitcoin seems poised to gain mainstream recognition, overcoming skeptics and a legacy of controversies. "We're witnessing a paradigm shift. After four years of political purgatory, bitcoin and the entire digital asset ecosystem are on the brink of entering the financial mainstream," said Mike Novogratz, founder and CEO of US crypto firm Galaxy Digital.
"This momentum is fueled by institutional adoption, advancements in tokenization and payments, and a clearer regulatory path."
During his campaign, Trump embraced digital assets, vowing to make the United States the "crypto capital of the world" and to build a national reserve of Bitcoin.
Crypto enthusiasts hope for an end to the intensified scrutiny under SEC Chair Gary Gensler, who announced last week that he will step down in January when Trump assumes office.
Wednesday's moves come as Trump announced the nomination of former SEC commissioner Paul Atkins to head the Securities and Exchange Commission.
Atkins, a former SEC commissioner, has played a key role in shaping crypto policies as co-chair of the Token Alliance, which focuses on creating best practices for digital asset issuance and trading platforms, and as a member of the Chamber of Digital Commerce.
Several cryptocurrency firms, such as Ripple, Kraken, and Circle, are vying for a spot on Trump's proposed crypto advisory council, hoping to influence his planned reforms of U.S. cryptocurrency policy, according to multiple industry leaders.
Trump Reshaping the Crypto Game
Trump's own enterprises appear to have interests in the crypto space. In September, he launched a new venture called World Liberty Financial. Details about Trump's new crypto business have been scarce, but his personal involvement in the sector has been seen by investors as a strong positive signal.
According to the Financial Times, Trump's social media company is in advanced discussions to acquire the crypto trading platform Bakkt.
The report, citing two sources familiar with the matter, indicates that Trump Media and Technology Group, which manages Truth Social, is nearing an all-stock deal to finalize the acquisition.
Billionaire Elon Musk, a prominent Trump ally, is also a well-known advocate for cryptocurrencies.
Bitcoin has seen a solid rebound after dipping below $16,000 in late 2022, driven in part by the approval of U.S.-listed bitcoin exchange-traded funds (ETFs) earlier this year. The Securities and Exchange Commission, which previously blocked such ETFs over concerns about investor protection, eventually allowed their introduction, enabling broader access to bitcoin for both retail and institutional investors.
Since the election, U.S.-listed bitcoin ETFs have attracted over $4 billion in investments.
Stocks linked to cryptocurrency have surged alongside Bitcoin's price, with shares of Bitcoin mining company MARA Holdings climbing approximately 65% in November.
