Bitcoin Surpasses $100,000 Amid Optimism for Pro-Crypto Policies Under Trump Presidency
This Thursday, Bitcoin surpassed the $100,000 mark for the first time, as Republican Donald Trump’s election as President of the United States fueled expectations that his administration would create a favorable regulatory environment for cryptocurrencies.
According to Statista data, in March 2024, the value of virtual currencies wrapped Bitcoin and Bitcoin exceeded $69,000, nearly 20 times higher than Ethereum’s price. To date, no cryptocurrency has rivaled Bitcoin, especially since the introduction of wrapped Bitcoin, a token that facilitates the migration of value from Bitcoin to Ethereum’s DeFi ecosystem.
Bitcoin’s New Price Milestone
Bitcoin has doubled its value this year and surged about 45% in the four weeks following Trump’s landslide electoral victory, which also ushered in a significant number of pro-cryptocurrency lawmakers to Congress.
As of 0240 GMT, Bitcoin was last trading at $100,027, up 2.2% from the previous session after reaching as high as $100,277.
“We’re witnessing a paradigm shift. After four years of political limbo, Bitcoin and the entire digital asset ecosystem are poised to enter mainstream finance,” said Mike Novogratz, founder and CEO of U.S.-based cryptocurrency firm Galaxy Digital.
“This momentum is driven by institutional adoption, advancements in tokenization and payments, and a clearer regulatory path,” he added.
More than 16 years after its creation, Bitcoin appears ready for widespread acceptance despite its detractors and a history of controversies.
“Bitcoin surpassing $100,000 is more than just a milestone; it’s a testament to the shifting tides of finance, technology, and geopolitics,” said Justin D’Anethan, an independent cryptocurrency analyst based in Hong Kong.
“The figure once dismissed as fantasy is now a reality,” he noted.
Trump’s Pro-Crypto Stance
Trump embraced digital assets during his campaign, pledging to make the U.S. the “crypto capital of the planet” and to establish a national Bitcoin reserve.
Crypto investors foresee an end to the heightened scrutiny under U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler, who announced last week that he would resign in January when Trump takes office.
On Wednesday, Trump revealed plans to nominate Paul Atkins to lead the SEC. Atkins, a former SEC commissioner, has been involved in cryptocurrency policy as co-chair of Token Alliance, which focuses on developing best practices for digital asset issuance and trading platforms, and the Chamber of Digital Commerce.
A slew of cryptocurrency companies, including Ripple, Kraken, and Circle, are vying for a spot on Trump’s promised cryptocurrency advisory council, aiming to influence his planned overhaul of U.S. policy, according to several executives in the digital asset industry.
Trump’s personal ventures may also have a stake in the sector. Notably, in September, he launched a new cryptocurrency firm, World Liberty Financial.
While details about the business remain scarce, investors see his personal interest in the sector as a bullish sign.
Trump Media and Technology Group, which operates Truth Social, is reportedly nearing a stock-based acquisition of Bakkt, according to the Financial Times.
Adding to the landscape, billionaire Elon Musk, a key Trump ally, is also a prominent cryptocurrency advocate.
Bitcoin’s Rally
Bitcoin’s rally from a low below $16,000 in late 2022 has been swift, fueled by the approval of Bitcoin exchange-traded funds (ETFs) in the U.S. earlier this year.
The SEC had long sought to block Bitcoin ETFs, citing investor protection concerns, but the products have allowed more investors, including institutional players, to gain exposure to Bitcoin.
Since the elections, more than $4 billion has flowed into U.S. Bitcoin ETFs.
“We were trading sideways for roughly seven months, then immediately after November 5th, U.S. investors jumped back in with both hands,” said Joe McCann, CEO and founder of Asynchronous, a Miami-based digital asset hedge fund.
In November, BlackRock’s ETF options had a strong debut, with call options (bets that the price will rise) significantly more popular than put options. McCann estimated that the put-to-call ratio was about 22-to-1.
Cryptocurrency-related stocks have soared alongside Bitcoin’s price, with shares of Bitcoin mining company MARA Holdings rising about 65% in November.
Read more:
Walmart could raise prices due to Trump tariffs
