Onome Amuge
Bitcoin has skyrocketed past the $100,000 threshold, propelled by a wave of investor enthusiasm in response to President-elect Donald Trump’s pro-crypto sentiment.
The leading digital asset hit $103,800 on Thursday, a 50 percent surge since Trump’s victory in the November election.
Trump’s nomination of noted crypto proponent Paul Atkins to the post of SEC Chairman is believed to have set off a chain reaction of events that culminated in Bitcoin’s surge past the $100,000 mark.
The appointment was seen as a clear indication of the incoming administration’s willingness to adopt a more favourable regulatory environment for cryptocurrency, which in turn sparked a wave of investor confidence.
Fueled by the appointment of pro-crypto figures to key positions, President-elect Trump’s administration ignited a renewed vigour in the cryptocurrency market. At the helm of the Commerce Department is Howard Lutnick, a renowned blockchain advocate, while Elon Musk will co-lead the “DOGE” department – a tongue-in-cheek moniker that pays homage to Dogecoin, the cryptocurrency known for its meme-inspired origins.
Dogecoin has surged 150 percent in the aftermath of Trump’s victory, reflecting the heightened investor enthusiasm in the wake of the administration’s pro-crypto stance.
Just two years ago, the cryptocurrency market was in disarray, marred by the collapse of FTX and the ensuing regulatory crackdowns. Bitcoin, a bellwether of the market, plummeted to $16,000, signaling widespread investor wariness.
In sharp contrast, the market has made a stunning turnaround, with a slew of institutional investors, led by the likes of BlackRock’s Bitcoin ETF, with its eye-catching $45 billion in assets under management, returning to the market in droves.
Cameron Winklevoss, co-founder of Gemini and cryptocurrency enthusiast, summed up the market mood: “This bitcoin bull run is different. We have a pro-tech president-elect, a red Senate, a red House, and a mandate from the country to build.”
Riding the wave of optimism generated by a growing appetite for digital assets among institutional investors, analysts heralded a golden era for the sector. This confidence was reflected in the $4.4 billion poured into crypto ETFs since Trump’s election win.
Notable companies like MicroStrategy joined in on the action, with plans to raise $42 billion for further Bitcoin investments.
Bitcoin’s journey from strength to strength was both rapid and awe-inspiring. In early November, riding a wave of post-election optimism, the cryptocurrency shattered the $80,000 barrier, smashing its way to an all-time high of $81,858.
This milestone was merely a taste of what was to come, as the digital asset continued its upward trajectory, piercing through the $90,000 mark days later before crossing the hallowed $100,000 threshold.
According to the most recent data released by CoinMarketCap, the world’s leading cryptocurrency Bitcoin stood at $102,724.32 on Thursday morning, representing a 7 percent increase within the preceding 24 hours.
Trump’s newfound support for cryptocurrency stands in stark contrast to the skepticism he exhibited during his previous administration, when digital currencies faced heightened regulatory scrutiny.
In his second term, Trump has signaled a dramatic shift, pledging to remove SEC Chair Gary Gensler, whose tenure saw over 100 regulatory actions against crypto firms.
Furthermore, Trump has committed to keeping 100 percent of all Bitcoin currently held by the U.S. government, along with any future acquisitions.
