Bitcoin Reaches Historic $100,000 Milestone Amid Optimism Over Pro-Crypto Policies Under Donald Trump

Bitcoin has hit an all-time high of $100,000, marking a significant achievement in the cryptocurrency's history.

The surge in value comes as investor confidence grows in anticipation of a more crypto-friendly regulatory landscape under the incoming presidency of Donald Trump, who recently secured victory in the US presidential election, reported Reuters.

Since the start of 2024, Bitcoin's value has more than doubled, climbing by approximately 45% over the past four weeks following Trump's election win. At 0240 GMT on Thursday, Bitcoin was trading at $100,027, up 2.2% from the previous session, after briefly touching $100,277 earlier in the day.

"Key developments, including Elon Musk heading the newly established Department of Government Efficiency, plans for a dedicated White House crypto policy role, and Trump's appointment of Paul Atkins as SEC Chair, have fuelled this remarkable rally towards this mark. With Trump's pro-crypto agenda and Atkins' leadership, the market is bound for friendlier reforms and wider adoption, setting Bitcoin on track to reach $120,000 in the coming weeks," said Edul Patel, CEO and Co-founder of Mudrex.

Anticipation of Pro-Crypto Policies

One major driver of Bitcoin's rally is the expectation of crucial policy changes under Trump's administration. During his campaign, Trump promised to transform the United States into the "crypto capital of the planet" and announced plans to establish a national bitcoin reserve, signalling his administration's strong focus on digital assets.

Industry experts are optimistic that the change in leadership will ease the stricter regulatory stance of the current Securities and Exchange Commission (SEC) Chair, Gary Gensler. Trump has already indicated his intention to appoint Paul Atkins, a former SEC commissioner with a reputation for supporting crypto initiatives, to head the SEC.

"We're witnessing a paradigm shift. Bitcoin and the entire digital asset ecosystem are on the verge of mainstream financial acceptance," said Mike Novogratz, CEO of US-based crypto firm Galaxy Digital, in a statement to Reuters.

Trump's Influence on Cryptocurrency

Several cryptocurrency firms, including Ripple, Kraken, and Circle, are lobbying for representation on Trump's proposed crypto advisory council, which aims to steer the overhaul of U.S. crypto policies.

Trump's personal engagement with the sector has also bolstered investor sentiment. In September, he launched a cryptocurrency venture named World Liberty Financial, although details about its operations remain sparse. Additionally, reports suggest that Trump Media and Technology Group is in advanced discussions to acquire the cryptocurrency trading platform Bakkt.

The approval of US-listed Bitcoin exchange-traded funds (ETFs) earlier this year has further propelled the cryptocurrency's rise. These funds, previously blocked by the SEC over investor protection concerns, have made Bitcoin more accessible to institutional and retail investors. Since Trump's election, more than $4 billion has flowed into these ETFs.

Market Impact and Caution Ahead

The rise in Bitcoin's value has also buoyed related sectors. Shares in MARA Holdings, a Bitcoin mining company, have surged by 65% in November alone. Meanwhile, options trading on BlackRock's Bitcoin ETF has been robust, with bullish call options far outweighing bearish puts at a ratio of 22 to 1.

Despite the euphoria, critics continue to raise concerns about Bitcoin's environmental impact and the cryptocurrency sector's past controversies, including the collapse of the FTX exchange two years ago and the subsequent imprisonment of its founder, Sam Bankman-Fried.

Warnings about potential market volatility remain. Steven McClurg, founder of Canary Capital, told Reuters, "Investors may look to take profits after this milestone, which could lead to short-term dips. However, once these sell orders are cleared, Bitcoin could rise even further, possibly hitting $120,000 by Christmas."