Bitcoin tops $100,000 for first time on pro-crypto hopes

Cryptocurrency reaches milestone as industry remains optimistic about second Trump administration

Bitcoin has surged more than 40 per cent since Donald Trump won the 2024 US presidential election. Bloomberg

Bitcoin surpassed $100,000 for the first time on Thursday morning, a historic milestone as the cryptocurrency continues a post-election rally fuelled by hopes that Donald Trump's second term as president will bring a pro-crypto era to the US.

The price of Bitcoin was $100,995.52 as of 7am UAE time on Thursday.

Bitcoin reached the threshold hours after Mr Trump nominated cryptocurrency advocate Paul Atkins to run the Securities and Exchange Commission, considered a major win for digital assets. Mr Atkins has served on the board of advisers for the Digital Chambers Token Alliance, a crypto advisory group, since 2017.

In a statement released on Wednesday, Mr Trump said Mr Atkins "recognises that digital assets and other innovations are crucial to making America greater than ever before". The president-elect also hailed Mr Atkins as a "proven leader for common sense regulations".

If confirmed by the Senate, he would replace outgoing SEC chairman Gary Gensler, who announced last month that he will step down on inauguration day. Mr Gensler has been a prominent figure in regulating cryptocurrencies during his time at the SEC, making him one of the industry's biggest antagonists.

That aggressive approach towards cryptocurrencies led to the SEC suing Binance, Coinbase, Kraken and other crypto exchanges that the agency alleged were unregistered securities exchanges, brokers and clearing agencies.

The current bout of optimism has dulled memories of a market rout in 2022 that exposed fraud and other risky practices and led to the collapse of platforms including Sam Bankman-Fried’s FTX exchange. The turmoil precipitated the SEC clampdown that now appears set to ease under Mr Trump.

Mr Trump has proposed several pro-friendly crypto proposals, including the establishment of a strategic Bitcoin reserve and a crypto advisory council.

“The $100,000 milestone, which once seemed bold, now looks conservative,” Nigel Green, chief executive of financial advisory and asset management firm deVere Group, said. “I believe Bitcoin could reach $120,000 in the first quarter of 2025 as the rally gains further traction.”

“The growing narrative of Bitcoin as digital gold is becoming impossible to ignore. It’s increasingly viewed as a hedge against inflation and a tool for portfolio diversification. Institutional interest is at an all-time high, and the infrastructure to support mass adoption continues to expand.”

Although Bitcoin’s rise is not without volatility, for long-term investors, the trajectory is unmistakable, he said. The combination of limited supply, increasing demand, and supportive regulatory developments forms a compelling case for sustained growth, Mr Green added.

“The window to act before Bitcoin becomes even more entrenched in the global financial system is closing,” he said.

Bitcoin has surged more than 40 per cent since Mr Trump's electoral win two weeks ago. The crypto market as a whole has gained about $1 trillion since his November 5 election win.

Much of the crypto industry's hopes of a friendlier administration rests on the promises made by Mr Trump. Once a sceptic, Mr Trump fully embraced crypto on the campaign trail.

He has said he will make the US the “crypto capital of the planet”. The timeline for implementation of his promises and the feasibility of the Bitcoin reserve remain uncertain.

Crypto corporations spent $119 million on federal elections this year to support pro-crypto candidates, according to data from Public Citizen, many of whom went on to win election. Mr Trump also has his own digital-asset projects.

Bitcoin accumulator MicroStrategy’s plans to accelerate purchases of the token, and the debut of options on US Bitcoin exchange-traded funds, also lifted sentiment this week.

A group of one dozen US ETFs investing in Bitcoin have attracted a net inflow of $5.9 billion in the period following Election Day, data compiled by Bloomberg show. The group’s total assets have reached an unprecedented $100 billion.