The price of Bitcoin crossed $100,000 on Thursday and was trading at $103,407 at 9.24 AM UAE time in a massive rally. The most popular cryptocurrency hit the milestone just hours after U.S. president-elect Donald Trump said he intends to nominate cryptocurrency advocate Paul Atkins to be the next chair of the Securities and Exchange Commission.
The appointment sparked hopes of a lighter regulatory approach towards the digital currency, with investors betting on the friendly U.S. administration to cement cryptocurrency’s position in financial markets.
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Crypto market value doubles
The total value of the cryptocurrency market has almost doubled in the last year, hitting a record high of just below $3.8 trillion, according to CoinGecko. In comparison, Apple alone is worth about $3.7 trillion.
Atkins, a former SEC commissioner, has been involved in crypto policy as co-chair of the Token Alliance, which works on developing the best practices for digital asset issuances and trading platforms, and the Chamber of Digital Commerce. Atkins’ potential appointment will mark a milestone in crypto policy since he will offer a new perspective and a deep understanding of the digital asset ecosystem.
Bitcoin rises over 50 percent since Trump’s election
Bitcoin’s journey as a new asset class has been 16 years in the making, making the concept of decentralized finance popular yet controversial among investors. In the four weeks since Trump’s sweeping election, Bitcoin rose over 50 percent on the prospects of a more crypto-friendly administration. Trump’s election also saw several pro-crypto lawmakers make it to Congress. Crypto investors have been hopeful that Trump’s policies will reduce regulatory barriers and boost institutional adoption.
Trump embraced digital currencies during his campaign, promising to make the United States the “crypto capital of the planet” and to accumulate a national stockpile of Bitcoin. The rising optimism came as crypto investors saw an end to increased scrutiny under U.S. Securities and Exchange Commission chair Gary Gensler.
Trump also announced a new crypto business, World Liberty Financial, in September. Although details about the business have been few, investors have taken his personal interest in the sector as a positive signal.
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Bitcoin recovers from 2022 lows
Bitcoin’s surge to the six-figure territory marks a remarkable comeback from its fall below $16,000 in 2022 when the industry was faltering from the collapse of the FTX exchange. The growing acceptance and investment in Bitcoin by large institutional investors this year has been a major support behind crypto’s rally this year.
U.S.-listed Bitcoin exchange-traded funds were approved in January and have been a channel for large investments, with more than $4 billion streaming into these funds since the election. Crypto-related stocks have also soared, with shares in Bitcoin miner MARA Holdings and Coinbase each up around 65 percent last month.
