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Bitcoin has surged above $100,000 for the first time, extending a dramatic rally as investors bet on greater political and regulatory support from US President-elect Donald Trump. The price of the world’s largest cryptocurrency climbed as much as 6.1 percent on Thursday to $103,800, up more than 50 percent since Trump’s November election victory.
Trump’s Nomination of Paul Atkins to the SEC
On Wednesday, the former president nominated crypto advocate Paul Atkins to run the Securities and Exchange Commission (SEC), the main market regulator, raising hopes for a more favorable regulatory climate for the crypto market.
Trump, who has vowed to make the US “the bitcoin superpower of the world,” has nominated several crypto enthusiasts to top roles, including Howard Lutnick to run the commerce department and Elon Musk to co-head a cost-saving effort dubbed the “department of government efficiency.” The acronym Doge is a nod to the crypto token Dogecoin, which Musk has touted online and has soared nearly 150 percent since election day.
Market Impact and Investor Reactions
The nomination of Atkins added further impetus to a rally sparked by the launch of the first stock market funds investing in Bitcoin in January.
“Bitcoin reaching $100k is an incredible milestone for our movement,” Kris Marszalek, chief executive of exchange Crypto.com, wrote on X. “We never doubted. We never wavered. And we will never stop building.”
A Dramatic Change in Fortune
The rise of cryptocurrency past $100,000 marks a dramatic change in fortune for the sector from two years ago, when the collapse of FTX in late 2022 spurred a crisis in the market and sent the price of Bitcoin plummeting to $16,000.
Binance, the world’s biggest crypto exchange, was fined $4.3 billion last year for failing to prevent money laundering, while FTX boss Sam Bankman-Fried was jailed for 25 years in March for defrauding customers.
Regulatory Challenges and Shifts
Under its current chair, Gary Gensler, the SEC launched a series of lawsuits against many of crypto’s biggest names, including exchanges Coinbase, Kraken, and Crypto.com, along with payments provider Ripple and blockchain software company Consensys. Under Gensler’s leadership, 18 percent of the SEC’s tips, complaints, and referrals were crypto-related, “despite the crypto markets comprising less than 1 percent” of US capital markets, the agency said in its statement announcing his departure in November.
Predictions for a Golden Era in Crypto
Now, crypto executives and traders predict a “golden era” for the industry during the Trump administration, betting that favorable new regulations will unleash a flood of money from big asset managers into the sector.
“Interest in crypto is pretty much unstoppable,” said Geoff Kendrick, global head of digital assets research at Standard Chartered.
Institutional Investment Fuels Bitcoin’s Rally
Bitcoin’s rally has also been fueled by a flood of institutional investment. Exchange-traded funds investing in the cryptocurrency, run by mainstream asset managers including BlackRock and Fidelity, have pulled in billions since they received regulatory approval in January.
The inflows have accelerated since Trump’s sweeping victory, with $4.4 billion pouring in since the start of November. BlackRock’s Bitcoin ETF now has $45 billion in assets.
MicroStrategy, the software group turned Bitcoin investor led by Michael Saylor, has also piled into the rally. It plans to raise $42 billion in share sales in the coming years for Bitcoin purchases. It has already raised more than $7 billion since the election from share and bond sales.
Conclusion
Trump’s change of tack on crypto, which he had previously criticized as a “scam,” came as he raked in millions of dollars of campaign financing from big crypto investors.
“This Bitcoin bull run is different,” said Cameron Winklevoss, co-founder of crypto exchange Gemini. “We have a pro-tech president-elect, a red Senate, a red House, and a popular vote mandate from the country to build.”
Articles and Reports
- CoinDesk: Bitcoin Price Analysis
- A comprehensive resource for Bitcoin price trends, market analysis, and news.
- CoinTelegraph: Crypto Regulation News
- Offers updates on cryptocurrency regulations, market movements, and industry insights.
- Investopedia: Understanding Bitcoin
- An educational article explaining Bitcoin, its technology, and its impact on the financial landscape.
- The Block: Institutional Investment in Crypto
- Insights into institutional investment trends in the cryptocurrency market.
- SEC Official Website: SEC and Cryptocurrency
- Official information on the SEC’s approach to regulating cryptocurrencies and digital assets.
Books
- “Mastering Bitcoin: Unlocking Digital Cryptocurrencies” by Andreas M. Antonopoulos
- A comprehensive guide to understanding Bitcoin and its underlying technology.
- “The Bitcoin Standard: The Decentralized Alternative to Central Banking” by Saifedean Ammous
- Explores the economic implications of Bitcoin and its potential role in the future of finance.
Videos and Webinars
- YouTube – TED Talks: The Future of Money
- A collection of talks on cryptocurrency, blockchain technology, and the future of finance.
- Coin Bureau: What is Bitcoin?
- Informative videos that explain various aspects of cryptocurrency and market trends.
Podcasts
- “The Bad Crypto Podcast”
- A podcast that covers a wide range of cryptocurrency topics, including news, interviews, and market analysis.
- “Unchained” by Laura Shin
- A podcast featuring in-depth interviews with industry experts and discussions on the latest in crypto news.
Forums and Communities
- Reddit – r/Bitcoin: Bitcoin Community
- A subreddit dedicated to discussions, news, and developments related to Bitcoin.
- BitcoinTalk Forum: Bitcoin Discussion Forum
- A popular online forum for discussing Bitcoin and cryptocurrency topics.