Bitcoin surged to an all-time high of $100,000 on Wednesday, marking a historic milestone for the cryptocurrency. This dramatic price increase comes just hours after President-elect Donald Trump announced his plans to nominate Paul Atkins as the next head of the Securities and Exchange Commission (SEC). Atkins, a former SEC commissioner and known cryptocurrency advocate, is expected to introduce policies that are more favorable to the crypto industry, which many believe could help usher in a new era of crypto-friendly regulation in the U.S.
Atkins’ nomination signals a stark contrast to the approach taken by Gary Gensler, the current SEC chair under President Biden. Gensler has been known for his aggressive stance toward regulating cryptocurrencies, aiming to curb their expansion in the U.S. Under his leadership, the SEC has taken action against several cryptocurrency platforms and projects, emphasizing the need for more stringent oversight of the industry. However, Gensler is set to step down from his position on Inauguration Day, making way for Atkins, who has promised a less stringent approach to crypto regulation.
Bitcoin’s rise to $100,000 follows a dramatic rally that began shortly after Trump’s election victory was projected on November 6. The announcement caused Bitcoin to spike by $6,000 in a single day, breaking through its previous record high of $74,000. Just a week later, the cryptocurrency reached $90,000, setting the stage for its record-breaking climb to $100,000. So far, Bitcoin has risen by 130% this year, outpacing the performance of traditional stock indices like the S&P 500, which is up by 28% over the same period.
This surge in Bitcoin’s value is largely attributed to the growing optimism surrounding a potential shift in U.S. policy toward cryptocurrency under the Trump administration. Despite being a former crypto skeptic, Trump has made significant moves to position himself as a champion of the industry. During his reelection campaign, Trump began to change his stance, courting the younger, tech-savvy demographic that tends to favor digital assets like Bitcoin. His about-face on cryptocurrency was especially evident after his appearance at a major crypto convention in Nashville in July, where he pledged to create a “strategic national bitcoin stockpile” and to hold onto the bitcoin seized from criminals rather than auctioning it off as the government currently does.
“If crypto is going to define the future, I want it to be mined, minted, and made in the USA,” Trump declared at the convention. This shift in policy was further cemented in September when Trump launched his own cryptocurrency business, World Liberty Financial. That same month, he made headlines by purchasing burgers at a Manhattan bar with Bitcoin, calling it “history in the making.”
Trump’s support for cryptocurrency extends beyond his own business ventures. His media company, which owns the social media platform Truth Social, is reportedly in talks to acquire the crypto trading forum Bakkt, according to the Financial Times. This move highlights Trump’s ongoing efforts to align himself with the growing crypto community and capitalize on the industry’s increasing prominence.
The crypto community has responded enthusiastically to Trump’s newfound support. Anthony Pompliano, a prominent cryptocurrency investor and founder of the investment firm Professional Capital Management, expressed his optimism about Bitcoin’s future in a post on X (formerly Twitter). “If you like bitcoin at $100,000, you’re going to love it at $1 million,” Pompliano wrote.
Trump’s embrace of cryptocurrency has paid off politically as well. During the most recent election cycle, the cryptocurrency industry heavily supported Trump and the Republican Party, with major super PACs donating around $131 million to elect pro-crypto candidates. Trump’s campaign also began accepting cryptocurrency donations in May, raising millions in the process. As a result, the crypto community, which played a significant role in Trump’s victory, is now expecting a wave of pro-crypto policies once he assumes office.
Trump’s support for cryptocurrency goes beyond his personal endorsements. His administration is expected to bring significant changes to how cryptocurrencies are regulated in the U.S. In addition to nominating Paul Atkins as SEC chair, Trump has also tapped Howard Lutnick, the CEO of Cantor Fitzgerald and a vocal supporter of the cryptocurrency Tether, to be part of his economic team. Reports suggest that Trump is even considering creating a White House role dedicated solely to cryptocurrency policy, a move that would further solidify his commitment to the industry.
However, not all financial regulators are on board with the rapid rise of cryptocurrencies. Federal Reserve Chairman Jerome Powell has repeatedly referred to Bitcoin as a “speculative asset” rather than a legitimate form of currency. Powell has likened Bitcoin to gold, suggesting that while both are assets that may hold value, they do not pose a threat to the U.S. dollar. “It’s not a competitor for the dollar. It’s really a competitor for gold,” Powell said at a conference on Wednesday.
Powell, who is not allowed to own any cryptocurrencies due to his position, has expressed concerns over the speculative nature of Bitcoin and other digital currencies. Despite these reservations, the growing influence of cryptocurrencies in global financial markets cannot be ignored. Bitcoin’s record-breaking rise to $100,000 is a testament to the increasing acceptance and institutional interest in digital assets.
As Trump prepares to take office in January, all eyes will be on the changes he implements in cryptocurrency regulation. With figures like Paul Atkins and Howard Lutnick joining his administration, the crypto community is hopeful that the next four years will see the U.S. become more accommodating to the industry. Whether or not Bitcoin will continue its meteoric rise remains to be seen, but with the backing of key political figures, its future in the U.S. looks promising.