Since the election of Donald Trump as president on November 5, the leading cryptocurrency surged more than 50% in just a span of one month.
The Trump Effect
Bitcoin did indeed hit the $100,000 mark on Thursday, December 5. This historic milestone was largely attributed to the election of Donald Trump and his administration's pro-cryptocurrency stance - particularly after Trump said he would now nominate former Securities and Exchange Commission (SEC) commissioner Paul Atkins, also a crypto supporter, to run the Wall Street regulator.
Trump took to social media to celebrate the milestone, posting "congratulations Bitcoiners" and "you're welcome!"
(On photo: A cartoon drawing of US President-elect Donald Trump holding a Bitcoin token to mark the crypto reaching over $100,000 - displayed at a Coinhero store in Hong Kong, China, on Thursday, December 5.)
Bitcoin - Rising from the Ashes
Bitcoin has more than doubled over the past 12 months, recouping the value it lost since its bull run in 2021, the year it peaked at around $64,000.
The crypto nosedived to around $16,000 at the beginning of 2023 and slowly crawled up to its 2021 high at the start of this year.
Dan Coatsworth, investment analyst at AJ Bell, London, described it as a "magic moment" for the crypto and said it had a "clear link" to Donald Trump's election win.
"Smashing through the $100,000 level does not represent bitcoin going mainstream. It's merely a psychological factor and ultimately just a number.
A lot of people have got rich from the cryptocurrency soaring in value this year, but this high-risk asset isn't suitable for everyone. It's volatile, unpredictable and is driven by speculation, none of which makes for a sleep-at-night investment."
Chang Wei Liang, FX and Credit Strategist at DBS, Singapore, said:
"Bitcoin prices are buoyant with crypto adoption possibly reaching an inflection point in the US.
The incoming Trump administration is seen as more crypto-friendly, and 2025 could see progress in setting up a U.S. Bitcoin strategic reserve, on top of changes in regulatory guidance that could help industry growth."
Shoki Omori, Chief Japan Desk Strategist at Mizuho Securities, Tokyo, said:
"Individual investors must be excited to see the BTC price top $100,000 following the news of Paul Atkins being nominated as SEC chair. Markets knew Gensler would be stepping down and there would be someone who is less aggressive on crypto regulations. Of course, this doesn't mean BTC will rally forever, as there will be moves to take profits.
I think if BTC were to rally more from here, other crypto majors should catch up a bit first, such as Ethereum. Ethereum looks cheap against Bitcoin. Ripple shot up, but again we saw profit taking at $2.80. Altos look choppy. The crypto community is looking for positive headlines to take crypto prices broadly up even higher. The tailwind from the Trump trade is starting to weaken as markets have a lot of headlines already priced in."
The world's largest cryptocurrency surged to around $103,450 shortly after 04:00 GMT on Thursday, before falling slightly.
Source:
https://www.reuters.com/technology/view-bitcoin-surges-above-100000-2024-12-05/
https://www.bbc.com/news/articles/cqjz04lv5q9o
https://qz.com/trump-credit-bitcoin-100-000-record-crypto-sec-atkins-1851714261
