US President-elect Donald Trump’s choice of a cryptocurrency advocate to lead the Securities and Exchange Commission (SEC) boosted the Bitcoin beyond US$100,000 for the first time, as investors reacted positively to the prospect of looser regulations in the country.
A cryptocurrency rose up to 6.1%, reaching a maximum of US$ 103,801 this Thursday (5). The cryptocurrency market as a whole has already seen a rise in value of around US$1.3 trillion since Trump’s election victory on November 5, with a platform that includes strong support for the crypto sector.
Trump nomeou Paul Atkins to replace outgoing SEC Chairman Gary Gensler. Gensler intensified the crackdown on digital assets following the 2022 market crash, which exposed fraudulent practices and triggered costly collapses.
The announcement ended a period in which Bitcoin flirted with the US$100,000 level, but was unable to surpass it, after reaching a new record shortly after Trump’s victory.
“Turning Point”
“This is a momentum rally,” said Jason Titman, CEO of cryptocurrency exchange Swyftx. “Global volumes in the spot market are above levels seen at the height of the pandemic, and the appointment of Paul Atkins as SEC Chairman has only added more excitement to the market.”
On November 22, Bitcoin was less than US$300 away from reaching US$100,000, but it retreated, remaining close to the historic mark. Cryptocurrency advocates see the six-digit number as validation of controversial claims that Bitcoin is a modern store of value and a hedge against the risk of inflation. For critics, the digital asset lacks fundamental value and is excessively exposed to speculation.
“Today’s milestone represents a turning point in Bitcoin’s journey from a niche asset to a mainstream financial instrument,” said Richard Teng, CEO of Binance, in an emailed statement.
As of Thursday morning, Bitcoin was trading just below $103,000, with 6% 24-hour gains at $102,378. For smaller tokens, the picture was more mixed, with Ether rising 5.5% to $3,928 while assets like Avalanche and Polkadot saw small declines.
Demand for ETFs
U.S. Bitcoin exchange-traded funds (ETFs) have attracted a net inflow of approximately $32 billion this year, including more than $8 billion since Trump won the election, according to data compiled by Bloomberg. The combined trading volume of digital assets and related derivatives on centralized exchanges reached a record high of more than $10 trillion last month, according to CCData.
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Trump promised to reverse the Biden administration’s measures against digital assets, appoint industry-friendly regulators and transform the US into the global cryptocurrency hub. The Republican even supported the idea of a national strategic Bitcoin reserve, although there are doubts about the viability of this proposal.
Trump, who was previously skeptical of cryptocurrencies, changed his position as the sector generously financed his election campaign to promote his interests.
“Investors should remember that an asset doesn’t go up in a straight line forever,” said Josh Gilbert, market analyst at eToro. “Bitcoin price corrections are normal, but it appears it will take something significant to slow Bitcoin down at the moment.”
Mt. Gox
Meanwhile, failed cryptocurrency exchange Mt. Gox on Thursday moved more than $2.4 billion in Bitcoin to an unidentified digital wallet, according to blockchain intelligence firm Arkham Intelligence. Mt. Gox’s activities have sometimes raised concerns about a possible oversupply in the market if creditors decide to sell the recovered Bitcoins, but traders appeared unfazed by the transfer.
Outside of Bitcoin, the cryptocurrency market is showing mixed performance. Dogecoin, popular among meme enthusiasts, rises 6.3%, and XRP drops almost 10%. The trading pattern indicated that investors were redirecting resources to Bitcoin, the market leader.
Bitcoin’s historic advance has had little impact on broader markets. Global stocks and Treasury yields held steady, while the dollar index retreated slightly.
