Bitcoin crosses $100,000 mark for the first time
What's the story
Bitcoin has crossed the all-important $100,000 mark for the first time ever. The cryptocurrency hit this milestone after Donald Trump's presidential victory in the US, which has fueled hopes for a better regulatory environment for cryptocurrencies. Bitcoin's value has surged a whopping 45% in the four weeks since Trump's electoral victory.
Market response
Trump's pro-crypto stance boosts market confidence
Trump's victory and his pro-crypto stance have given a major boost to market confidence. His plans to set up a national Bitcoin reserve and form a crypto advisory council are viewed as positive moves toward adopting digital currencies. This change in attitude is evident in the market's reaction, with Bitcoin trading at $100,027 at 02:40 GMT today, up 2.2% from the last session after hitting a peak of $100,277.
Leadership change
Trump nominates crypto advocate for SEC leadership
In a move that further signals his support for cryptocurrencies, Trump has nominated Paul Atkins to lead the Securities and Exchange Commission (SEC). Atkins is a former SEC commissioner with cryptocurrency policy experience. He has been recognized by Trump for his pragmatic approach to regulations and consistent advocacy against excessive market oversight. This nomination comes as current SEC Chair Gary Gensler announced his resignation set for January, coinciding with Trump's inauguration.
Future outlook
Experts predict mainstream adoption of digital assets
Experts remain optimistic about the future of digital assets, predicting that they are on the verge of going mainstream. This optimism stems from heightened institutional interest, advancements in tokenization and payments, and regulatory clarity. Mike Novogratz, founder and CEO of US cryptocurrency company Galaxy Digital said, "We're witnessing a paradigm shift. After four years of political purgatory, Bitcoin and the entire digital asset ecosystem are on the brink of entering the financial mainstream."
Council competition
Cryptocurrency firms vie for influence in Trump's proposed council
Several cryptocurrency firms such as Ripple, Kraken, and Circle are competing to join Trump's proposed crypto advisory council. They hope to influence possible US policy reforms. This highlights the increasing dominance of digital currencies in the financial domain. Apart from his political moves, Trump has also expressed commercial interest in cryptocurrencies with companies such as World Liberty Financial launched in September.
Market recovery
Bitcoin's recovery bolstered by ETF approvals
Bitcoin has quickly rebounded from its fall under $16,000 in late 2022, supported by the approval of US-listed bitcoin exchange-traded funds (ETFs) in January. Although the SEC initially resisted these financial products over investor safety, they have now garnered over $4 billion in investments since the election. Joe McCann, CEO and founder of Asymmetric, a Miami digital assets hedge fund said, "We were trading basically sideways for about seven months; then immediately after November 5 US investors resumed buying hand-over-fist."