Key Takeaways
- Bitcoin’s (BTC) price has breached the coveted target of $100,000 for the first time in history. The apex cryptocurrency also set a new all-time high of $104,000, continuing its 2024 rally and the recent upward momentum since the U.S. presidential elections.
- BTC has witnessed a rise of 126% this year, driven by demand for spot Bitcoin ETFs in the U.S., its reduced market supply from the halving event, increased corporate interest in it as a treasury asset, and Donald Trump’s return to the White House.
- Trump has kept good on his promise to appoint pro-crypto individuals in key economic positions by nominating Bitcoin advocate and former SEC commissioner Paul Atkins as the new chairman of the Securities and Exchange Commission.
- The market believes the move to pave the way for a more accommodating regulatory environment for the digital asset industry.
The price of Bitcoin, the flagship cryptocurrency, has surpassed the $100,000 mark for the first time in history. According to Trading View data, Bitcoin (BTC) set a new all-time high of $104,000 roughly 90 minutes after hitting the six-figure milestone.
Bitcoin’s 2024 is driven by demand for the spot Bitcoin ETFs, the reward halving event from April that reduced its supply, Donald Trump’s U.S. election victory in November, and increased corporate adoption of the digital asset, led by Michael Saylor’s business intelligence firm MicroStrategy.
Bitcoin Price Up 126% In 2024 As It Breaks Past The $100,000 Valuation
BTC’s value has risen by 126% since the beginning of the year, when it was changing hands at $44,000. In reaching the $100,000 target, the leading crypto asset’s market capitalization also registered a new high, hitting $2 trillion.
However, the 2024 rally is nowhere close to its meteoric bull action from 2017, when Bitcoin’s price skyrocketed from $1,000 in January to $20,000 in December, a whopping 1,900% increase in value.
The exchange-traded funds backed by Bitcoin have seen more than $31 billion in net inflows since their debut in the United States. The apex crypto asset’s supply was cut in half during its fourth halving event, from 6.25 BTC to 3.125 BTC, making it more scarce than before while increasing demand.
The biggest catalyst for Bitcoin’s record-breaking rally is Donald Trump. The President-elect, who called the digital asset a “scam” during his first term, made a radical U-turn to become the industry’s loudest voice on the biggest stage. He promised to introduce friendlier policies, appoint pro-crypto candidates in key positions, and establish a strategic Bitcoin reserve to support the failing dollar.
Bitcoin Advocate Paul Atkins Chosen By Trump To Chair The SEC
One of his biggest campaign promises was to fire the Securities and Exchange Commission (SEC) chairman Gary Gensler, which he made while speaking at June’s Bitcoin 2024 convention held in Nashville.
Gensler, a former Goldman Sachs banker appointed as the agency’s head by President Biden, was notorious for using lawfare against crypto firms. Several leading industry players, such as Binance, Ripple, Kraken, and Coinbase, were victims of the financial regulator’s attempts to stifle growth in the sector by employing stringent enforcement measures.
Earlier this month, Gensler announced that he would step down as the SEC chair on January 20, 2025 – the day Trump will be inaugurated as the 47th President of the United States. Although his term runs until March 2026, it is normal for the incoming President to appoint a candidate who aligns with their policies.
Bitcoin’s latest rally also comes as Trump nominated former SEC commissioner and crypto advocate Paul Atkins to replace Gensler as the agency’s head. The President-elect announced the decision on his social media platform, Truth Social, calling Atkins a “proven leader for common sense regulations” and that he recognizes “digital assets are crucial to Making America Greater than Ever Before”.
It is believed that Atkin’s appointment could remove several regulatory hurdles that have constrained the broader crypto market under the Biden administration. He is a veteran in the financial regulatory field and is the CEO and founder of Patomak Global Partners, a consultancy firm specializing in risk management.
Since 2017, Atkins has co-chaired the Digital Chamber’s Token Alliance, where he has been working on policy issues related to the digital asset industry. He also served as an SEC commissioner from 2002 to 2008, under the Bush administration, where he was a strong advocate for transparency and investor protections.
Trump Appoints Pro-Crypto Individuals In Key Economic Positions, Indicating Changing Policy Landscape For The Sector
The 47th President has nominated several crypto-friendly figures to key economic positions in his administration, signaling a major shift in U.S. financial policy towards crypto assets. He picked billionaire hedge fund manager Scott Bessent, an advocate of Senator Cynthia Lummis’ proposal to establish a strategic national Bitcoin stockpile, as the Treasury Secretary; and Howard Lutnick, CEO of Cantor Fitzgerald and a prominent Bitcoin proponent, to head the Department of Commerce. Former SEC chairman Jay Clayton has been nominated to serve as the U.S. Attorney for the Southern District of New York, a crucial position in the financial capital.
These appointments suggest that the incoming administration may foster a more supportive environment for cryptocurrencies, potentially propelling Bitcoin and other crypto assets to further highs.
At the time of writing, Bitcoin (BTC) is trading at $102,658 – up 6.39% in the last 24 hours.
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