President-elect Donald Trump’s selection of a crypto proponent to head the US securities regulator sent Bitcoin soaring to $100,000 for the first time, as traders reacted positively to the prospect of relaxed regulations.
The digital asset rose by as much as 6.1% to $103,801 on Thursday, before settling at $101,968 by 6:45 am in London. The overall crypto market has gained around $1.3 trillion since Trump’s election victory on 5 November, which was backed by a platform that includes strong support for the crypto sector.
Trump chose Paul Atkins to replace outgoing Securities and Exchange Commission (SEC) chair Gary Gensler, who had cracked down on digital assets after a 2022 market collapse exposed fraudulent practices and led to costly blowups.
“This is a momentum rally,” said Jason Titman, CEO of crypto brokerage Swyftx. “Global spot volumes are above mid-pandemic levels, and the nomination of Paul Atkins as SEC chair has just added to the carnival atmosphere.”
On 22 November, Bitcoin was less than $300 away from reaching $100,000 but fell back, remaining in sight of the landmark level. Crypto enthusiasts see the six-figure price as a validation of the controversial view that Bitcoin is a modern-day store of value and a hedge against inflation risk. Critics, however, argue that the digital asset lacks fundamental value and is too susceptible to speculative whims.
Reaching $100,000 is “a huge milestone for the token and crypto industry as a whole,” said Caroline Mauron, co-founder of Orbit Markets, a provider of liquidity for crypto derivatives. “We expect further momentum in the coming days.”
US exchange-traded funds for Bitcoin have attracted a net inflow of about $32 billion this year, including over $8 billion since Trump became president-elect, data compiled by Bloomberg showed.
The combined trading volume for digital assets and related derivatives across centralised exchanges hit a record high of more than $10 trillion last month, according to CCData.
Trump has promised to reverse the Biden administration’s clampdown on digital assets, appoint friendly regulators, and make the US the global hub for crypto. The Republican has even supported the idea of a strategic national Bitcoin reserve, although there are doubts about the feasibility of this goal.
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