Bitcoin Surges Past $100,000 as Trump 2.0 Ignites Crypto Enthusiasm – One America News Network
December 5, 2024 – 5:15 AM PST
(Reuters) – Bitcoin surged past $100,000 for the first time on Thursday, a significant milestone recognized even by its critics as a sign of maturation for digital assets, as investors anticipate a supportive U.S. administration to fortify the role of cryptocurrencies in the financial markets.
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After breaking the $100,000 mark in the early Asian hours on Thursday, driven by U.S. President-elect Trump’s nomination of crypto advocate Paul Atkins to head the Securities and Exchange Commission, Bitcoin reached a peak of $103,619 before settling at around $102,675, marking a 5% increase for the day.
The overall cryptocurrency market valuation has nearly doubled this year, reaching a record high of over $3.8 trillion, as indicated by data from CoinGecko. In comparison, Apple (AAPL.O) is valued at about $3.7 trillion.
Bitcoin’s journey from a niche interest among libertarians to a mainstream asset has created numerous millionaires, established a new asset class, and popularized the concept of “decentralized finance” throughout a tumultuous and often contentious 16-year history.
This year alone, Bitcoin has more than doubled in value, and it has risen over 50% in just four weeks following Donald Trump’s significant election victory, which also resulted in the election of numerous pro-crypto lawmakers to Congress.
“We’re witnessing a paradigm shift,” stated Mike Novogratz, founder and CEO of U.S. crypto firm Galaxy Digital.
“Bitcoin and the entire digital asset ecosystem are on the verge of merging into the financial mainstream – the momentum is driven by institutional adoption, advancements in tokenization and payment systems, and a more defined regulatory framework.”
Trump, who previously labeled cryptocurrency a scam, has now embraced digital assets during his campaign, vowing to position the United States as the “crypto capital of the world” and to amass a national stockpile of bitcoin.
“After approximately seven months of sideways trading, U.S. investors began buying aggressively again right after Nov. 5,” said Joe McCann, CEO and founder of Asymmetric, a Miami-based digital asset hedge fund.
Bitcoin advocates welcomed Trump’s selection of Atkins to the SEC.
Atkins, a former SEC commissioner, has engaged in crypto policy as co-chair of the Token Alliance, which aims to “develop best practices for digital asset issuances and trading platforms,” and is affiliated with the Chamber of Digital Commerce.
“Atkins will provide a fresh perspective, grounded in a comprehensive understanding of the digital asset ecosystem,” remarked Kristin Smith, CEO of the Blockchain Association.
“We are eager to collaborate with him … to usher in a new wave of American crypto innovation.”
A number of crypto companies, including Ripple, Kraken, and Circle, are also vying for positions on Trump’s anticipated crypto advisory council.
PART OF THE LANDSCAPE
Bitcoin has demonstrated resilience through significant market downturns.
Its rise into six-figure territory marks a remarkable recovery from a low of under $16,000 in 2022, during which the industry suffered from the fallout of the FTX exchange’s collapse. Founder Sam Bankman-Fried was subsequently imprisoned.
Analysts highlight that the increasing acceptance of bitcoin among institutional investors this year has fueled the record-breaking surge.
Bitcoin exchange-traded funds (ETFs) listed in the U.S. were authorized in January and have facilitated large-scale investments, with over $4 billion flowing into these funds since the election.
“Roughly 3% of the total bitcoin supply that will ever exist has been acquired in 2024 by institutional investors,” explained Geoff Kendrick, global head of digital assets research at Standard Chartered.
“Digital assets as an asset class are becoming normalized,” he stated.
They are increasingly being financialized, highlighted by the introduction of bitcoin futures in 2017 and a successful launch of options on BlackRock’s ETF (IBIT.O) in November.
Crypto-related stocks have surged along with Bitcoin’s price, with shares of bitcoin miner MARA Holdings (MARA.O) and exchange operator Coinbase (COIN.O) each rising about 65% in November.
Software firm Microstrategy, which has frequently raised capital to purchase bitcoin and held around 402,100 bitcoins as of December 1, has experienced a gain of roughly 540% this year.
Trump himself introduced a new crypto venture, World Liberty Financial, in September, although details remain limited, and billionaire Elon Musk, a prominent Trump ally, is also an advocate for cryptocurrencies.
‘WHO CAN PROHIBIT IT’
Cryptocurrencies face criticism due to their significant energy consumption and their involvement in illicit activities worldwide, while the underlying technology has yet to revolutionize how money is transferred globally.
On Wednesday, the U.S. and Britain announced they had disrupted what they described as a global money laundering operation that utilized cryptocurrency to enable wealthy Russians to dodge sanctions and launder money for drug traffickers.
Estimates vary, but the Cambridge University Centre for Alternative Finance approximates that bitcoin consumes about as much electricity annually as Poland or South Africa.
Nonetheless, as Russian President Vladimir Putin remarked at an investment conference on Wednesday: “Who can prohibit it? No one.” Its persistence is arguably indicative of a certain level of resilience.
“Over time, it is establishing itself as a part of the financial landscape,” stated Shane Oliver, chief economist and head of investment strategy at AMP in Sydney.
“I find it challenging to assign a value to it … it’s anyone’s guess. However, it does exhibit a momentum aspect, and at this moment, that momentum is upward.”
Compiled by Reuters staff; Editing by Alden Bentley, Lisa Shumaker, Chizu Nomiyama, Shri Navaratnam and David Evans
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