Bitcoin has reached a historic milestone, briefly crossing the $106,000 (£83,890) mark before settling around $105,000 during Monday’s Asian trading session. The cryptocurrency’s surge follows a rally of over 50% since Donald Trump’s victory in the 5 November election.
The Trump administration is widely seen as more favorable toward cryptocurrencies compared to the Biden administration. On Thursday, the president-elect announced plans to explore creating a national reserve of digital currency, akin to the U.S. strategic oil reserve.
Peter McGuire of XM.com described the rally as “parabolic,” fueled by FOMO—fear of missing out. “Many investors believe Bitcoin could hit $120,000 by the end of the year, with projections of over $150,000 by mid-2025,” he told the BBC.
Trump has also appointed Silicon Valley entrepreneur David Sacks, a former PayPal executive and close ally of Elon Musk, as his AI and cryptocurrency advisor. Additionally, Trump has indicated plans to nominate pro-cryptocurrency lawyer Paul Atkins as the new chair of the Securities and Exchange Commission (SEC).
Current SEC chairman Gary Gensler announced he would step down on Trump’s inauguration day, 20 January. “I thank President Biden for entrusting me with this responsibility. The SEC has upheld its mission to enforce the law without fear or favor,” Gensler wrote on X, formerly Twitter.
Trump’s criticism of Gensler stems from the SEC’s recent crackdown on cryptocurrency firms, which has drawn mixed reactions. The president-elect had previously pledged to replace Gensler on the first day of his new administration.
With these developments, Bitcoin’s future trajectory remains a focal point for investors and analysts alike.