Bitcoin surpassed $100,000 for the first time on Thursday, following Trump’s nomination of cryptocurrency supporter Paul Atkins to lead the US securities regulator, boosting optimism that the incoming president will ease regulations on the sector.
Washington, United States:
On Thursday, US President-elect Donald Trump claimed credit for Bitcoin’s historic rise above $100,000, telling his social media followers, “You’re welcome,” after the cryptocurrency surged more than 50% since his election victory.
“CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!! Together, we will Make America Great Again!” Trump, who launched his own crypto platform in September, wrote on Truth Social.
Bitcoin surpassed the $100,000 mark for the first time on Thursday following Trump’s nomination of cryptocurrency advocate Paul Atkins to lead the US securities regulator. This fueled optimism that the incoming president would ease regulations on the sector.
The digital asset has experienced a remarkable rally since Trump’s November 5 election, during which he promised to make the United States the “bitcoin and cryptocurrency capital of the world.”
Bitcoin reached a high of $103,800.45 during Asian trading hours on Thursday before settling around $101,000. After Trump’s comments, it began climbing again, reaching $103,320.
The volatile asset has surged approximately 140% since the start of the year. However, its growth had slowed in recent weeks, hovering just below $100,000 as traders awaited new catalysts to buy.
This came after Trump, set to take office in January, announced Wednesday that he would nominate Paul Atkins to lead the Securities and Exchange Commission (SEC).
Atkins, who served as an SEC commissioner from 2002 to 2008, founded the risk consultancy firm Patomak Global Partners in 2009. The firm’s clients include businesses in banking, trading, and the cryptocurrency sectors.
The Trump transition team noted that Atkins had been co-chairman of the Digital Chamber of Commerce, which advocates for the use of digital assets, since 2017.
“Paul is a proven leader for common-sense regulations,” Trump said in a statement, highlighting Atkins’ commitment to “robust, innovative” capital markets. “He also recognizes that digital assets and other innovations are crucial to making America greater than ever before,” Trump added.
Trump’s Change of Course
Atkins will replace Gary Gensler, who led a crackdown on the cryptocurrency sector following a 2022 market collapse. Despite this, the SEC approved the trading of two new financial products this year, allowing the public to invest in cryptocurrencies through ETFs (exchange-traded funds).
“Institutional interest and regulatory shifts are adding legitimacy, turning what once seemed like a fringe asset into a force reshaping finance,” said Matt Britzman, senior analyst at Hargreaves Lansdown. “Love it or doubt it, bitcoin’s climb is rewriting the rule book for digital assets,” he added.
Despite previously calling cryptocurrencies a “scam,” Trump has reversed his stance and become a major supporter of digital currencies during his campaign. In September, he announced the launch of his digital currency platform, World Liberty Financial, in partnership with his sons and other entrepreneurs.
Trump has also built a strong relationship with billionaire Elon Musk, who has supported Trump’s presidential bid and will reportedly lead a new US government-efficiency group to reduce federal waste. Musk, a cryptocurrency enthusiast, is said to have contributed over $100 million to help Trump reclaim the White House. Musk reacted to Bitcoin’s $100,000 milestone by tweeting, “Wow.”
Hopes for Integration
Under Trump, there are expectations that the US will create a strategic reserve of bitcoins, largely made up of tokens seized by the courts, which could encourage other countries to grant the cryptocurrency greater legitimacy.
Cryptocurrencies have been in the headlines due to their volatility and the collapse of major industry players, such as the FTX exchange.
“It’s volatile, unpredictable, and driven by speculation, none of which makes for a sleep-at-night investment,” said Dan Coatsworth, an analyst at investment group AJ Bell.
Bitcoin, conceived in 2008 by an anonymous entity or group under the pseudonym Satoshi Nakamoto, was introduced as a decentralized alternative to mainstream financial institutions. It is created through “mining,” where powerful computers solve complex problems to validate transactions on the blockchain.
Bitcoin has faced criticism for being the currency of choice for untraceable transactions on the dark web, which is often used for criminal activities. It has also been criticized for facilitating money laundering and enabling ransomware attacks.
In September 2021, El Salvador became the first country to adopt Bitcoin as legal tender. However, a 2023 study by Central America University revealed that 88% of Salvadorans had never used it. Additionally, the environmental impact of Bitcoin mining, which consumes large amounts of energy, has come under scrutiny.
