Bitcoin’s value soared past the $100,000 mark for the first time on Thursday, reaching a peak of $103,800, as traders celebrated Donald Trump’s decision to appoint a crypto-friendly chair to the US Securities and Exchange Commission (SEC).
The cryptocurrency has enjoyed a blistering rally since Trump’s election victory on November 5, with its value jumping over 50% and 140% since the turn of the year.
Trump’s appointment of Paul Atkins, a major crypto proponent, as the new SEC chair, has reinforced optimism that the new president will push through measures to deregulate the sector.
Atkins, a former SEC commissioner, has been a vocal critic of the SEC’s tough stance on cryptocurrency firms and is expected to steer a more crypto-friendly course.
The news of Atkins’ appointment has electrified the crypto community, fueling investor optimism about a potentially more accommodating regulatory landscape.
Stephen Innes, an analyst at SPI Asset Management, noted that Atkins’ appointment aligns with broader Republican advocacy for a lenient approach to the flourishing digital asset market.
Despite having once branded cryptocurrencies a “scam”, Trump has made a U-turn and become a major advocate of the unit during his election campaign. In September, he announced plans to launch a digital currency platform named World Liberty Financial, along with his sons and entrepreneurs.
Trump’s close friendship with tycoon Elon Musk, who reportedly spent over $100 million to help Trump regain the White House, has also boosted the cryptocurrency’s value.
Musk reacted to the news of Bitcoin hitting the $100,000 mark by writing “Wow” on his X social media platform.
The prospect of relaxed regulation under Atkins’ watch has fueled hopes of seeing cryptocurrencies integrate more deeply into the economic life of the country.
Dan Coatsworth, an analyst at investment group AJ Bell, noted that expectations of deregulation have driven investors to pile into the digital currency and related stocks.
Among the measures expected from the sector is the creation of a strategic reserve of bitcoins in the United States, consisting mainly of tokens seized by the courts. This could push other countries to grant more legitimacy to the virtual currency.
As the crypto market continues to evolve, it remains to be seen how regulators will respond to the growing demand for digital assets.
