Bitcoin’s value crossed $100,000 for the first time on Thursday, as traders expect a favourable regulatory environment under incoming US President Donald Trump, news agency Reuters reported.
âBitcoin crossing $100,000 is more than just a milestone; it’s a testament to shifting tides in finance, technology, and geopolitics,â Justin D’Anethan, a Hong Kong-based independent crypto analyst, told Reuters.
Trump’s favourable stance towards cryptocurrencies is expected to favour its growth once he assumes office in January 2025. Bitcoin has more than doubled in value this year and is up about 45% in the four weeks since Trump’s sweeping election victory.
On Wednesday, Trump said he would nominate former SEC commissioner Paul Atkins to head the Securities and Exchange Commission. Atkinson has been the co-chair of the Token Alliance, which works to âdevelop best practices for digital asset issuances and trading platforms,â and the Chamber of Digital Commerce.
Trump also promised to create a new crypto advisory council, and several crypto companies, including Ripple, Kraken, and Circle, are jostling for a seat. According to several digital asset industry executives, the council will have a major say in Trump’s planned overhaul of US cryptocurrency policy.
American billionaire Elon Musk, a Trump backer, also favours liberal regulation of crypto assets.
âWe’re witnessing a paradigm shift. After four years of political purgatory, bitcoin and the entire digital asset ecosystem are on the brink of entering the financial mainstream,â said Mike Novogratz, founder and CEO of U.S. crypto firm Galaxy Digital.
âThis momentum is fueled by institutional adoption, advancements in tokenization and payments, and a clearer regulatory path,â Novogratz added.
Trump’s shifting stance
During his first term, Trump referred to cryptocurrencies as a âscam.â His move to cut corporate taxes during his first term brought more liquidity into the markets and drove more investments into high-growth assets such as cryptocurrency.
During the poll campaign, Trump projected himself as a âcrypto-friendlyâ candidate and even pledged to make the US the âbitcoin and cryptocurrency capital of the worldâ. Trump also promised to ensure the US federal government does not liquidate its crypto assets.
He also contemplated creating a âstrategic reserveâ of bitcoin. The soaring value of bitcoin convinced Trump to launch his new venture, World Liberty Financial, with family members to trade cryptocurrencies. The Financial Times reported last week that Trump’s social media company Truth Social is close to an all-stock acquisition of Bakkt, a crypto trading firm.
