SINGAPORE – Bitcoin surged past the $100,000 mark for the first time on Dec 5, buoyed by President-elect Donald Trump’s appointment of Paul Atkins, a known cryptocurrency advocate, as the next chair of the US Securities and Exchange Commission (SEC).
The milestone caps a dramatic rise for Bitcoin, which has more than doubled in 2024 and gained 45% since Trump’s sweeping election victory in November. Trump’s win also brought a wave of pro-crypto lawmakers into Congress, further fueling optimism in the digital asset market.
Atkins, a former SEC commissioner, is a prominent figure in crypto policy circles and co-chairs the Token Alliance, a group focused on best practices for digital assets. He will succeed outgoing SEC Chairman Gary Gensler, who faced criticism for his aggressive crackdown on cryptocurrencies after a market collapse in 2022 revealed widespread fraud.
“Bitcoin crossing $100,000 is more than just a milestone; it’s a testament to shifting tides in finance, technology, and geopolitics,” said Justin D’Anethan, an independent crypto analyst based in Hong Kong.
Mainstream Momentum
After 16 years of volatility and skepticism, Bitcoin appears poised for mainstream acceptance. According to Mike Novogratz, CEO of Galaxy Digital, the rally is driven by institutional adoption, advancements in tokenization, and Trump’s crypto-friendly policies.
“We’re witnessing a paradigm shift,” Novogratz said. “This momentum is fueled by a clearer regulatory path and the promise of the US becoming the global crypto leader.”
Trump has pledged to make the US the “crypto capital of the planet” and hinted at building a national Bitcoin reserve. His September launch of a crypto venture, World Liberty Financial, has further signaled his commitment to the sector.
Crypto Companies Eye Trump’s Advisory Council
Major crypto firms, including Ripple, Kraken, and Circle, are vying for spots on Trump’s proposed crypto advisory council, which aims to reshape US digital asset policies. Meanwhile, reports suggest Trump Media and Technology Group is negotiating to acquire Bakkt, a prominent crypto trading firm, in an all-stock deal.
Billionaire Elon Musk, a staunch Trump ally and crypto advocate, has also backed the industry’s resurgence.
ETF Approval and Market Impact
Bitcoin’s rapid recovery from its 2022 lows below $16,000 began in January 2024, when the SEC approved Bitcoin exchange-traded funds (ETFs). These products have attracted over $4 billion in investments, enabling greater institutional exposure to cryptocurrencies.
“We were trading sideways for months, but after November, US investors resumed buying aggressively,” said Joe McCann, CEO of digital assets hedge fund Asymmetric.
Crypto stocks have also surged alongside Bitcoin. Shares in Bitcoin miner Mara Holdings climbed 65% in November, reflecting renewed enthusiasm in the sector.
Challenges and Criticism
Despite its rally, the cryptocurrency market faces ongoing scrutiny. Critics cite its environmental impact, association with criminal activity, and the fallout from scandals like the 2022 collapse of FTX.
Market observers warn of potential profit-taking after Bitcoin’s surge, but some predict the rally will continue. Steven McClurg, founder of Canary Capital, expects Bitcoin to hit $120,000 by Christmas.
“Once we flush out sell orders, this could climb even higher,” McClurg said.
As the crypto market celebrates its latest milestone, all eyes are on how Trump’s administration will shape the future of digital assets.
