Bitcoin (BTC-USD) continued its upward trajectory on Thursday, surpassing the significant $100,000 mark. This impressive rally is fueled by expectations of a favorable regulatory environment for cryptocurrencies under President-elect Donald Trump’s administration.
Since Trump’s victory in November, Bitcoin has seen a remarkable surge of over 40%, consistently approaching the $100,000 milestone. At the time of writing, it’s trading around $102,650 per token.
The latest price jump occurred late Wednesday following Trump’s appointment of Paul Atkins as chair of the Securities and Exchange Commission (SEC). Atkins is widely perceived as a pro-cryptocurrency choice for the position.
Trump praised Atkins, CEO of Patomak Global Partners and former SEC commissioner, as “a proven leader for common sense regulations.” He further emphasized Atkins’ recognition of the importance of “digital assets & other innovations” for America’s future on Truth Social.
New York Senator Kirsten Gillibrand, a Democrat, acknowledged Atkins’ relevant experience to develop federal crypto legislation, stating that he “could very well be a good SEC head.”
Investor confidence in crypto-friendly policies gained momentum last month when the SEC announced Chair Gary Gensler’s departure on January 20th, coinciding with the president-elect’s inauguration. Gensler’s tenure at the SEC was marked by a regulatory crackdown on the crypto industry. Wall Street anticipates a less restrictive approach under the new leadership.
Owen Lau, executive director and senior analyst at Oppenheimer, highlighted the potential “dramatic regime shift from violation of security laws to crypto capital” under the anticipated new SEC chair.
Bitcoin has become a central element of the “Trump trade,” reflecting Trump’s campaign pledges, including prioritizing the establishment of a national bitcoin reserve. Reports of Trump’s transition team exploring the creation of a “crypto czar” to oversee bitcoin policy have further contributed to the token’s rise.
Furthermore, last month’s reports of Trump Media & Technology Group (DJT) being in advanced negotiations to acquire crypto trading platform Bakkt (BKKT) have added to the positive sentiment surrounding the sector.
The recent substantial inflows into Bitcoin spot exchange-traded funds (ETFs) have also propelled prices higher. The commencement of trading for options linked to BlackRock’s spot bitcoin ETF (IBIT) on Nasdaq in November has further intensified trading activity in the crypto market.
Despite the prevailing optimism, Oppenheimer’s Lau cautioned investors about potential volatility following this significant price achievement. He advised caution around the $100,000 level, anticipating possible selling pressure as investors seek the next breakout point.
In conclusion, Bitcoin’s surge past $100,000 underscores the market’s anticipation of a more favorable regulatory landscape under the incoming Trump administration. While the outlook appears positive, investors should remain mindful of potential volatility and exercise prudence as the market navigates this new milestone.
