5-12-2024 (LONDON) Bitcoin has achieved an unprecedented milestone, surpassing US$100,000 for the first time in its history, driven by Donald Trump’s presidential victory and growing anticipation of a crypto-friendly regulatory landscape in the United States.
The world’s leading cryptocurrency marked this historic achievement on Thursday, reaching US$100,277 before settling at US$100,027 by 02:40 GMT, representing a 2.2% increase from the previous trading session. The digital currency has witnessed a remarkable surge this year, more than doubling in value and recording a stunning 45% increase since Trump’s electoral triumph last month.
Mike Novogratz, who heads the American cryptocurrency firm Galaxy Digital, describes the current climate as transformative. “The digital asset ecosystem is finally emerging from its political wilderness,” he remarked. “We’re observing a fundamental shift in how traditional finance views cryptocurrencies.”
The ascent to this psychological barrier arrives as Trump’s administration prepares to reshape American crypto policy. The President-elect has boldly declared his intention to transform the US into the globe’s cryptocurrency hub, including plans to establish a national bitcoin reserve.
A significant catalyst for market optimism has been the forthcoming departure of Gary Gensler, the current Securities and Exchange Commission (SEC) chair, who will step down in January. Trump’s nomination of Paul Atkins, a former SEC commissioner with strong ties to the crypto industry, has further bolstered confidence among digital asset investors.
The cryptocurrency’s remarkable recovery from its late 2022 low of US$16,000 has been accelerated by January’s approval of US-listed bitcoin exchange-traded funds (ETFs). Since the election, these investment vehicles have attracted more than US$4 billion in fresh capital.
Justin D’Anethan, an independent cryptocurrency analyst based in Hong Kong, noted, “This isn’t merely a numerical achievement – it represents a fundamental shift in global financial architecture.”
Despite the euphoria, some industry observers urge caution, pointing to the sector’s controversial history, including the FTX exchange collapse and ongoing concerns about energy consumption and criminal activity.
Nevertheless, market specialists remain bullish. Steven McClurg of Canary Capital projects bitcoin could reach US$120,000 by year’s end. “Once we clear the current profit-taking phase, we could see another significant upward movement,” he predicted.
Trump’s personal ventures in the cryptocurrency space, including his recently launched World Liberty Financial and reported negotiations between his media company and crypto trading firm Bakkt, have added another dimension to the market’s bullish sentiment.
