President-elect Donald Trump’s selection of a cryptocurrency supporter to be the next head of the US securities regulator lifted Bitcoin to $100,000 for the first time.as traders warmed to the prospect of relaxed regulations.
The digital asset rose up to 6.3% to US$102,598 on Thursday. The overall cryptocurrency market is up approximately $1.3 trillion since Trump’s election victory on November 5 on a platform that includes a strong embrace of the cryptocurrency sector.
Trump tapped Paul Atkins to replace outgoing Securities and Exchange Commission Chairman Gary Genslerwhich cracked down on digital assets after the market crash in 2022 exposed fraudulent practices and led to costly blowups.
The announcement ended a period in which Bitcoin had flirted with the $100,000 level, but failed to overcome it.after rebounding to a new record following Trump’s victory.
turning point
“This is a momentum rally,” said Jason Titman, CEO of cryptocurrency brokerage Swyftx. “Global spot volumes are above mid-pandemic levels and the nomination of Paul Atkins as SEC chairman only added to the carnival atmosphere.”
On November 22, Bitcoin was less than $300 away from hitting $100,000, but it retreated without losing sight of the milestone. Cryptocurrency supporters see the six-digit figure as validating controversial claims that Bitcoin is a modern store of value and hedge against inflation risk. For critics, the digital asset lacks fundamental value and is too exposed to speculative whims.
«Today’s milestone marks a turning point in Bitcoin’s journey, which has gone from being a niche asset to a widely used financial instrument“Richard Teng, CEO of Binance, said in an emailed statement.
Bitcoin was trading slightly below $103,000 at 10 a.m. Thursday in London. The picture was more mixed for smaller tokens, with Ether advancing 1.8% and clins like Avalanche and Polkadot declining slightly.
US Bitcoin exchange-traded funds have attracted net inflows of about $32 billion this yearincluding more than $8 billion since Trump became president-elect, data compiled by Bloomberg show. The combined trading volume of digital assets and related derivatives on centralized exchanges hit a record high of more than $10 trillion last month, according to CCData.
Trump has promised to undo the Biden administration’s clampdown on digital assets, install friendly regulators, and make the US the global home of cryptocurrencies.. The Republican even backed the idea of a strategic national reserve of Bitcoin, although there are questions about whether this latter goal is feasible.
Trump used to be a cryptocurrency skeptic, but it took a turn when the sector unleashed an electoral campaign to promote its interests.
“Investors should remember that an asset does not go up in a straight line forever,” said Josh Gilbert, market analyst at eToro. “Drops for Bitcoin are normal, but it looks like it’s going to take something big to stop Bitcoin right now.”
Meanwhile, bankrupt cryptocurrency exchange Mt. Gox on Thursday transferred more than $2.4 billion worth of Bitcoin to an unidentified digital asset wallet, according to blockchain intelligence firm Arkham Intelligence.. Mt. Gox activity sometimes raises concerns about an oversupply from creditors looking to sell returned Bitcoin, but traders seemed to shrug off the transfer.
The cryptocurrency market outside of Bitcoin was mixed. Crowd-favorite Dogecoin rose, Ether held steady, and XRP retreated. The trading pattern indicated that investors were diverting some funds to the market leader, Bitcoin.
Bitcoin’s historic advance barely had an impact on the broader markets. Global stocks and Treasury yields were steady, while the dollar index fell.
