December 5, 2024 – (New York) Bitcoin crossed the $100,000 mark for the first time on Thursday, following the election of Republican Donald Trump as President of the United States. This development has increased expectations of a crypto-friendly regulatory landscape under his administration. The cryptocurrency’s value has more than doubled this year, rising about 45% in the four weeks following Trump’s decisive victory, which also saw many pro-crypto lawmakers enter Congress.
Despite historical controversies, Bitcoin is gaining acceptance among the general public more than 16 years after its creation. Justin D’Aneth, a Hong Kong-based crypto analyst, pointed out that “Bitcoin surpassing $100,000 is not just a milestone; this reflects significant changes in finance, technology and geopolitics.
During his campaign, Trump advocated for digital assets, promising to make the United States the “crypto capital of the planet” and build a national bitcoin stockpile. Investors are optimistic about reduced oversight from the U.S. Securities and Exchange Commission (SEC), as its Chairman Gary Gensler is expected to resign in January when Trump takes office.
On Wednesday, Trump announced his intention to nominate Paul Atkins, former SEC commissioner and co-chair of the Token Alliance, to lead the SEC. This has sparked interest from various crypto companies, including Ripple, Kraken, and Circle, who are seeking to influence Trump’s proposed crypto advisory board.
Additionally, Trump companies have expressed interest in the crypto sector; he launched a new business, World Liberty Financial, in September, and reports indicate his media company is in advanced discussions to acquire crypto trading firm Bakkt.
Elon Musk, a notable Trump supporter, is also a strong advocate of cryptocurrencies. Bitcoin’s resurgence from a low of less than $16,000 in late 2022 has been rapid, aided by the approval of U.S.-listed Bitcoin exchange-traded funds (ETFs) earlier this year. This approval opened the door for more investors, including institutions, to gain exposure to Bitcoin, leading to an influx of more than $4 billion into U.S.-listed Bitcoin ETFs since the election.
Joe McCann, CEO of digital asset hedge fund Ametric, said: “We basically traded sideways for seven months, but after November 5, US investors started buying aggressively again. » The strong performance of options on the BlackRock ETF in November, with calls significantly outperforming puts, also reflects this renewed interest.
Although the Bitcoin price surge has also had a positive impact on crypto-related stocks, concerns persist. The industry is still recovering from the fallout from the FTX scandal, and issues related to energy consumption and cryptocrime remain controversial.
