New York: Bitcoin has achieved a historic milestone, surging past the $100,000 mark on Thursday, driven by expectations that the incoming Trump administration will usher in a crypto-friendly regulatory framework.
The surge marks a significant turning point in the cryptocurrency’s journey, with its value more than doubling in 2024 and jumping 45% in the month following Donald Trump’s election victory. The President-elect has promised to position the U.S. as a global crypto leader, pledging supportive policies that have bolstered investor confidence.
A paradigm shift in crypto adoption
“We’re witnessing a paradigm shift,” said Mike Novogratz, CEO of Galaxy Digital. “Institutional adoption, advancements in tokenization, and regulatory clarity are propelling cryptocurrencies into mainstream finance.”
Trump’s promises include creating a national bitcoin reserve and appointing crypto advocate Paul Atkins as the new SEC chair. Atkins is expected to streamline regulations, fostering innovation and expanding the role of digital assets in financial markets.
Institutional momentum
The approval of U.S.-listed bitcoin exchange-traded funds (ETFs) earlier this year has fueled institutional investment. Over $4 billion has flowed into these funds since Trump’s win, and BlackRock’s ETF options have seen significant activity, reflecting bullish market sentiment.
Crypto-related stocks are also riding the wave, with bitcoin miner MARA Holdings reporting a 65% surge in November.
Mixed reactions
Despite the optimism, some remain cautious. Memories of the 2022 collapse of FTX and the legal fallout involving its founder Sam Bankman-Fried are fresh. Critics warn of volatility and regulatory hurdles as the crypto market evolves.
Looking ahead
Trump’s pro-crypto stance, coupled with the involvement of key industry figures like Elon Musk, has set high expectations. Whether these policies deliver long-term growth or face setbacks remains to be seen.