Bitcoin surpassed $100,000 for the first time Thursday as traders celebrated Donald Trump’s choice to appoint a crypto enthusiast to lead the US Securities and Exchange Commission, bolstering hopes that the next president will push through measures to de-regulate the industry.
The cryptocurrency shot past the mark to a high of $103,800, following a torrid rally since Trump’s November 5 election, when he promised on the campaign trail to make the United States the “bitcoin and cryptocurrency capital of the world.”
The digital unit has increased by more than 50% since the tycoon’s victory, and by around 140 percent since the turn of the year. However, the unit’s gain has stopped in recent weeks, hovering just below $100,000 as traders await new reasons to buy in.That came on the heels of news that Trump has named strong crypto proponent Paul Atkins as chairman of the Securities and Exchange Commission.
Atkins, who served as an SEC commissioner from 2002 to 2008, created risk consultant business Patomak Global Partners in 2009, with clients in the banking, trading, and cryptocurrency industries. According to a statement from the Trump transition team, Atkins has served as co-chairman of the Digital Chamber of Commerce, which promotes the use of digital assets, since 2017.
“Paul is a proven leader for common sense regulations,” Trump said in a statement highlighting Atkins’ dedication to “robust, innovative” capital markets. “He also recognises that digital assets and other innovations are crucial to Making America Greater than Ever Before,” stated the president. He would succeed Gary Gensler, who oversaw a crackdown on the sector following the 2022 market crash.
Nonetheless, the SEC approved the trading on the American market of two new financial products, known as ETFs, which allow the general public to purchase cryptocurrencies. One is backed by the price of bitcoin, while the other is backed by ether, the second most valuable unit by capitalisation.
“Atkins, a conservative legal eagle who has criticised the SEC’s tough stance on cryptocurrency firms, is expected to steer a more crypto-friendly course,” said Stephen Innes of SPI Asset Management. “This strategic move has electrified the crypto community, fuelling investor optimism about a potentially more accommodating regulatory landscape under Atkins’ watch, aligning with broader Republican advocacy for a lenient approach to the flourishing digital asset market.”
Trump has shifted his stance on cryptocurrencies from a “scam” to a major advocate during his election campaign. In September, he announced the launch of World Liberty Financial, a digital currency platform with his sons and entrepreneurs. He has also become a close friend of tycoon Elon Musk, who he said would lead a new US government-efficiency group tasked with cutting federal waste.
According to Dan Coatsworth, an analyst at investment firm AJ Bell, “Layer on top of expectations that he will strip back regulation on the crypto industry and you begin to understand why investors have piled into the digital currency and related stock.” Among the measures expected from the sector is the creation of a strategic reserve of bitcoins in the United States, consisting mainly of tokens seized by the courts, which could push other countries to grant more legitimacy to the virtual currency.
Bitcoin was created in 2008 by an individual or group writing under the name Satoshi Nakamoto. It was promoted as a way to break away from traditional financial institutions by creating a decentralised transaction platform. The digital money is created — or “mined” — as a reward for powerful computers solving tough problems to confirm transactions on a meddle-proof registry known as the blockchain.
Bitcoin has long been attacked for being the preferred money for making anonymous payments on the dark web, a secret section of the internet used for illegal activity. The asset has frequently been targeted for aiding money laundering and allowing extortion via ransomware attacks.
