Bitcoin has surged past the $100,000 mark, enjoying a meteoric rise since Donald Trump’s election victory on November 5. Trump, who campaigned on making the U.S. the “bitcoin and cryptocurrency capital of the world,” has been a significant factor behind this rally. Since his win, Bitcoin has risen by more than 50%, and it has soared approximately 140% since the beginning of the year. However, after reaching a peak of $103,800, the price slightly eased, hovering just below $103,000 as traders awaited further market drivers.
The Catalyst: Trump’s SEC Appointment
The momentum in Bitcoin’s value gained further traction with the announcement that Trump had nominated Paul Atkins, a staunch crypto advocate, to chair the Securities and Exchange Commission (SEC). Atkins, who previously served as an SEC commissioner from 2002 to 2008, has been a vocal critic of the SEC’s harsh stance on cryptocurrencies. He founded Patomak Global Partners, a consultancy that works with companies in the banking, trading, and cryptocurrency industries. Atkins also co-chaired the Digital Chamber of Commerce, an organization promoting digital assets. His nomination has fueled hopes for a more crypto-friendly regulatory environment in the U.S.
Trump expressed his support for Atkins, stating, “Paul is a proven leader for common-sense regulations” and highlighting his commitment to fostering “robust, innovative” capital markets. Atkins is set to replace Gary Gensler, whose crackdown on the cryptocurrency sector followed the 2022 market collapse.
A Shift Toward More Crypto-Friendly Policies
Analysts, including Stephen Innes of SPI Asset Management, predict that Atkins’ leadership will steer the SEC toward a more supportive approach to cryptocurrency. This aligns with the broader Republican advocacy for looser regulation in the booming digital asset market.
Despite previously calling cryptocurrencies a “scam,” Trump has since become a prominent supporter of digital currencies. In September, he announced plans to launch a digital currency platform with his sons and other entrepreneurs, called World Liberty Financial.
Elon Musk’s Support and Bitcoin’s Surge
Trump has also formed a close relationship with Elon Musk, who has been a vocal backer of Trump’s political comeback. Musk reportedly invested over $100 million to support Trump’s 2024 campaign and has consistently endorsed his candidacy on social media platforms like X. Musk’s endorsement has further fueled investor enthusiasm for Bitcoin. Upon hearing of Bitcoin’s $100,000 milestone, Musk reacted with a simple “Wow” on X.
Dan Coatsworth of AJ Bell noted that expectations of regulatory rollbacks, coupled with the soaring value of Bitcoin, have driven investors into the cryptocurrency and related stocks.
The possibility of a strategic reserve of Bitcoin, potentially consisting of tokens seized in court cases, has raised expectations that the U.S. could grant more legitimacy to cryptocurrencies, further legitimizing them globally. Samer Hasn of XS.com believes that relaxed regulations may lead to deeper integration of cryptocurrencies into the broader economic landscape.
The Controversial Journey of Bitcoin
Bitcoin, created in 2008 by an anonymous figure or group under the name Satoshi Nakamoto, has long been a subject of debate. Initially designed as a decentralized alternative to traditional financial systems, it has been criticized for facilitating illicit activities like money laundering and ransomware attacks. Bitcoin has also struggled with extreme volatility, highlighted by the collapse of major industry players like the FTX exchange.
In 2021, Bitcoin was adopted as legal tender by El Salvador, though a 2023 study revealed that 88% of Salvadorans had never used it. Despite its controversial past, Bitcoin’s growth continues to captivate global markets.
