Bitcoin Hits $100,000 for the First Time

AFP/APP

Hong Kong: Bitcoin surged past the $100,000 milestone for the first time on Thursday, as cryptocurrency enthusiasts celebrated the appointment of a crypto advocate to head the US Securities and Exchange Commission (SEC).

The move has bolstered optimism that the new administration under President Donald Trump will promote deregulation in the digital asset sector.

The cryptocurrency climbed to a peak of $103,800, continuing a remarkable rally that began following Trump’s November 5 election victory. During his campaign, Trump pledged to position the United States as the “bitcoin and cryptocurrency capital of the world.” Since the start of the year, Bitcoin has risen over 140%, with a 50% surge coming in the wake of Trump’s win.

After hovering just below $100,000 in recent weeks, Bitcoin’s breakthrough came with the announcement that Trump selected Paul Atkins, a prominent cryptocurrency advocate, to lead the SEC. Atkins previously served as an SEC commissioner (2002–2008) and founded Patomak Global Partners in 2009, a risk consultancy firm with clients in the banking, trading, and cryptocurrency sectors.

In a statement from the Trump transition team, Atkins was lauded for his leadership as co-chairman of the Digital Chamber of Commerce, which has been promoting digital asset adoption since 2017. Trump praised Atkins as a “proven leader for common-sense regulations,” emphasizing his commitment to fostering “robust, innovative” capital markets.

Atkins is expected to replace Gary Gensler, who had taken a stricter approach to cryptocurrency regulation following the market turmoil in 2022. Despite Gensler’s regulatory actions, the SEC authorized trading of two cryptocurrency-based ETFs earlier this year, allowing greater public access to Bitcoin and Ether investments.

“Atkins, known for critiquing the SEC’s tough stance on crypto firms, is expected to adopt a more crypto-friendly regulatory approach,” noted Stephen Innes of SPI Asset Management. “This strategic appointment has ignited excitement within the crypto community, fueling investor optimism about a more accommodating regulatory framework.”

Trump, who previously dismissed cryptocurrencies as a “scam,” has become a vocal proponent, even announcing in September the launch of a digital currency platform, World Liberty Financial, in collaboration with his sons and other entrepreneurs.

His growing alliance with Elon Musk, a vocal advocate for cryptocurrencies, has further amplified market sentiment. Musk reportedly invested over $100 million to support Trump’s presidential campaign and reacted to Bitcoin’s milestone with a simple, “Wow,” on his X (formerly Twitter) platform.

The anticipation of relaxed regulations is stoking hopes for deeper integration of cryptocurrencies into the US economy. Among expected measures is the establishment of a US strategic Bitcoin reserve, primarily consisting of seized tokens, which could encourage other nations to legitimize digital assets.

Samer Hasn of XS.com remarked that the possibility of relaxed regulations “fuels the hope of cryptocurrencies becoming more entrenched in economic life.”

Bitcoin, created in 2008 by an anonymous entity using the name Satoshi Nakamoto, was designed to bypass traditional financial institutions through a decentralized blockchain platform. While hailed for its innovation, Bitcoin has faced criticism for facilitating illicit transactions, including money laundering and ransomware payments.

Despite these controversies, Bitcoin’s historic rally underscores its growing legitimacy as an asset class and its increasing adoption worldwide. As the US gears up for a potentially crypto-friendly era, investors remain optimistic about Bitcoin’s future in global finance.