Bitcoin reaches US$100,000 milestone after Trump administration picks signal crypto-friendly policies

Bitcoin soared past the US$100,000 mark for the first time on Wednesday, achieving a historic milestone amid growing optimism surrounding President-elect Donald Trump’s forthcoming administration.

Trump’s recent announcements, including the nomination of crypto advocate Paul Atkins to lead the Securities and Exchange Commission (SEC), have bolstered confidence in pro-cryptocurrency policies.

Atkins, a former SEC commissioner and vocal supporter of cryptocurrency, is expected to adopt a regulatory approach that is favourable to the industry.

This would mark a sharp contrast to outgoing SEC Chair Gary Gensler, who aggressively pursued tighter oversight of cryptocurrencies under President Biden. Gensler plans to resign on Inauguration Day in January.

Bitcoin’s ascent to $100,000 occurred mere hours after the announcement of Atkins’ nomination.

The rally builds on a trend that began after Trump’s projected victory on 6 November, when the cryptocurrency surged $6,000 in a single day, surpassing $74,000. Over the following weeks, it breached the $90,000 mark, further fuelled by heightened optimism in the sector.

According to market analysts, Bitcoin’s price has climbed 130% since the beginning of the year, significantly outpacing the S&P 500, which has risen 28% over the same period. A large portion of Bitcoin’s gains came after Trump’s election win, as investors anticipated a favourable shift in regulatory policies.

Trump’s evolving stance on cryptocurrency played a crucial role in rallying the crypto community, a key demographic in his re-election campaign.

Historically a sceptic, Trump had previously dismissed Bitcoin as “not money” and “based on thin air.” However, his views shifted in the lead-up to his presidential campaign, with Trump courting the crypto industry through various initiatives.

In July, Trump headlined a major cryptocurrency convention in Nashville, where he pledged to establish a “strategic national Bitcoin stockpile” and to retain seized cryptocurrencies within government reserves instead of auctioning them off.

Trump emphasised his desire for the United States to lead in crypto innovation, stating, “If crypto is going to define the future, I want it to be mined, minted and made in the USA.”

The president-elect also made headlines in September with the launch of his cryptocurrency business, World Liberty Financial. Around the same time, Trump embraced Bitcoin in a symbolic gesture, using it to purchase food at a popular Manhattan bar frequented by cryptocurrency enthusiasts.

Trump’s outreach to the crypto sector proved politically advantageous, with the industry directing substantial financial support toward his campaign and other Republican candidates. Leading cryptocurrency super PACs donated approximately $131 million to pro-crypto congressional races during the election cycle.

The Trump campaign itself began accepting cryptocurrency donations in May, raising millions through this avenue.

Beyond the SEC, Trump has signalled further support for the industry with nominations like Howard Lutnick, CEO of Cantor Fitzgerald and a staunch supporter of Tether, to a key financial position.

Additionally, Bloomberg reports that the president-elect is considering establishing the first White House role dedicated exclusively to cryptocurrency policy.

The shift in administration marks a stark departure from the Biden era, characterised by increased scrutiny and regulatory crackdowns on the cryptocurrency sector. As Trump prepares to take office, the industry is optimistic that his leadership will usher in a new era of growth and innovation.