Bitcoin Surges Past $100,000 as Trump’s New Era Sparks Crypto Excitement

Bitcoin has soared above the $100,000 mark for the first time, marking a significant milestone that even sceptics are acknowledging as a pivotal moment for digital assets.

This surge, which saw Bitcoin reach an all-time high of $103,619 shortly after breaking the $100,000 barrier during Thursday’s Asian morning, has been largely attributed to the optimism surrounding the pro-crypto stance of U.S. President-elect Donald Trump, particularly following his nomination of Paul Atkins to head the Securities and Exchange Commission.

The cryptocurrency market has witnessed a remarkable transformation, with its total value nearly doubling this year to surpass $3.8 trillion, according to data from CoinGecko. For context, this figure is comparable to the market capitalisation of tech giant Apple, which stands at approximately $3.7 trillion.

Bitcoin has emerged from the fringes of the libertarian movement to become a prominent player on Wall Street, creating millionaires and establishing itself as a new asset class. The concept of “decentralised finance” has gained traction during its tumultuous 16-year history, and this year has seen Bitcoin more than double in value. Since Trump’s decisive election victory, which brought a wave of pro-crypto lawmakers into Congress, Bitcoin has surged over 50%.

“We’re witnessing a paradigm shift,” remarked Mike Novogratz, founder and CEO of Galaxy Digital, a prominent U.S. crypto firm. He believes that Bitcoin and the broader digital asset ecosystem are on the verge of entering the financial mainstream, driven by institutional adoption, advancements in tokenisation and payments, and a clearer regulatory framework.

Donald Trump, who once perceived crypto as a scam, later embraced them especially during his campaign. He vowed to make the United States the “crypto capital of the planet” and to build a national stockpile of Bitcoin. This has led to a renewed interest among U.S. investors, who have resumed buying at a remarkable pace since early November.

The nomination of Atkins has been met with enthusiasm from Bitcoin advocates. A former SEC commissioner, Atkins has been actively involved in shaping crypto policy, serving as co-chair of the Token Alliance, which aims to establish best practices for digital asset issuances and trading platforms.

Kristin Smith, CEO of the Blockchain Association, expressed optimism about Atkins’ appointment, stating that he brings a deep understanding of the digital asset ecosystem, which could herald a new wave of innovation in American crypto.

Numerous crypto companies, including Ripple, Kraken, and Circle, are eager to join Trump’s promised crypto advisory council, hoping to influence policy in this rapidly evolving sector.

Bitcoin’s journey to six-figure territory is particularly striking, especially considering its dramatic fall below $16,000 in 2022, a period marked by the collapse of the FTX exchange and the subsequent jailing of its founder, Sam Bankman-Fried.

Analysts attribute the current rally to the increasing interest from institutional investors, with U.S.-listed Bitcoin exchange-traded funds (ETFs) approved earlier this year facilitating large-scale purchases. Since the election, over $4 billion has flowed into these funds, highlighting the growing acceptance of Bitcoin as a legitimate asset class.

Geoff Kendrick, global head of digital assets research at Standard Chartered, noted that around 3% of the total supply of Bitcoin has been acquired by institutional investors in 2024 alone, further normalising digital assets in the financial landscape. The introduction of Bitcoin futures in 2017 and a successful launch of options on BlackRock’s ETF in November have also contributed to this trend.

As Bitcoin’s price continues to climb, crypto-related stocks have experienced significant gains, with shares in Bitcoin miner MARA Holdings and exchange operator Coinbase each rising around 65% in November. Software firm Microstrategy, which has amassed approximately 402,100 Bitcoins, has seen its stock soar by around 540% this year.

Despite the excitement, cryptocurrencies face ongoing scrutiny due to concerns over their environmental impact and their association with illicit activities. Recent actions by the U.S. and British governments to disrupt a global money laundering operation that utilised cryptocurrencies have highlighted these issues. Nonetheless, as Russian President Vladimir Putin remarked, “Who can prohibit it? No one.”

The resilience of Bitcoin and its acceptance as part of the financial landscape seem to be solidifying. Shane Oliver, chief economist at AMP in Sydney, acknowledged the challenges in valuing Bitcoin but noted its current upward momentum. As the digital asset continues to capture the imagination of investors and policymakers alike, its future remains a topic of fervent discussion and speculation.