Bitcoin's price crossed $100,000 for the first time on Thursday. This increase happened after Republican candidate Donald Trump was elected president of the United States. People believe his administration will create rules that are good for cryptocurrencies.
Bitcoin has more than doubled in value this year and has gone up about 45% in the four weeks since Trump's election, bringing in many lawmakers who support cryptocurrencies.
Mike Novogratz, the founder and CEO of the U.S. crypto company Galaxy Digital, said, "We’re seeing a major change. After four years of struggle, bitcoin and the whole digital asset world are about to become a big part of the financial mainstream."
This momentum is driven by more businesses adopting Bitcoin, improvements in digital assets like tokenization and payments, and clearer rules from regulators. More than 16 years after its creation, Bitcoin seems ready to become widely accepted despite critics and its controversial past.
Justin D'Anethan, a crypto analyst in Hong Kong, said, “Bitcoin crossing $100,000 is not just a big achievement; it shows changes happening in finance, technology, and global politics.” "The figure that was once seen as impossible is now a reality."
During his campaign, Trump supported digital assets, vowing to make the U.S. the "crypto capital of the planet" and even accumulate a national bitcoin reserve.
Crypto investors believe that with Trump taking office, there will be less intense oversight from the U.S. Securities and Exchange Commission (SEC). This is because Gary Gensler, the SEC Chair, announced he would step down in January when Trump begins his presidency.
Trump announced he would nominate Paul Atkins to lead the Securities and Exchange Commission (SEC). Atkins, a former SEC commissioner, has been active in crypto policy, co-chairing the Token Alliance, which focuses on creating best practices for digital asset issuances and trading platforms and working with the Chamber of Digital Commerce.
Many crypto companies, including Ripple, Kraken, and Circle, are competing for a spot on Trump’s promised crypto advisory council. They want to influence his planned changes to U.S. policy, according to several industry leaders.
Bitcoin's rapid rebound from a dip below $16,000 in late 2022 has been raised by the approval of the U.S.-listed bitcoin ETFs in January. These ETFs have allowed more investors, including institutions, to enter the market, with over $4 billion flowing into them since the election.
After a slow period, U.S. investors began buying heavily in November. Crypto-related stocks, such as those in bitcoin mining, have also surged. However, the industry's growth is not without criticism, including concerns about its energy consumption, the FTX scandal, and ongoing issues with crypto crime.