Bitcoin’s price has just skyrocketed, breaking the $100,000 barrier for the first time ever. This monumental achievement saw the world’s oldest and largest cryptocurrency reach a peak of $103,800 on Thursday, a dramatic turnaround after a turbulent period. This surge wasn’t unexpected; the seeds were sown following Donald Trump’s resounding US election victory.
The rally began after Trump’s win, fueled by investor optimism regarding a more favorable regulatory environment under his presidency. In the four weeks following the election, bitcoin jumped over 50%, and its growth since the beginning of the year stands at an impressive 140%. This remarkable rise reflects a significant shift in investor sentiment, mirroring Trump’s public embrace of digital assets. The President-elect has boldly declared his intention to make America the “crypto capital of the planet,” even proposing the creation of a national bitcoin stockpile.
The journey to this historic milestone is especially striking considering bitcoin’s plunge to $16,000 following the collapse of FTX in late 2022. This event triggered a widespread crypto market crisis, punctuated by a $4.3 billion fine levied against Binance for failing to prevent money laundering, and the subsequent 25-year prison sentence for FTX boss Sam Bankman-Fried. The recovery to surpass $100,000 within two years represents a stunning reversal of fortune for both bitcoin and the broader cryptocurrency sector.
Several key factors have contributed to this recent surge. The nomination of Paul Atkins, a prominent crypto advocate, to chair the Securities and Exchange Commission (SEC) is particularly significant. Atkins, founder of Patomak Global Partners, boasts a client list including major players in banking, trading, and cryptocurrency. His appointment, coupled with Trump’s statement that Atkins “recognises that digital assets and other innovations are crucial to Making America Greater than Ever Before,” signals a potentially transformative shift in US regulatory policy.
Further bolstering the rally is Trump’s direct involvement in the crypto space. His social media company, Trump Media and Technology Group (TMTG), is reportedly in advanced talks to acquire the crypto trading firm Bakkt – an all-stock deal, according to sources cited by The Financial Times. Additionally, the launch of Trump’s own crypto venture, World Liberty Financial, has drawn considerable attention and fueled further investment. The appointment of other crypto-friendly figures to key roles within his administration, including Howard Lutnick and Elon Musk, only reinforces this pro-crypto agenda.
Beyond the US, geopolitical factors have also played a role. Political turmoil in South Korea, including President Yoon Suk Yeol’s brief declaration of martial law, created market uncertainty that ultimately benefited Bitcoin, as investors sought refuge in the volatile yet increasingly accepted digital asset. The influx of pro-crypto lawmakers into Congress, alongside growing interest from countries like China (which recently eased restrictions on personal crypto ownership) and others considering bitcoin for national reserves (such as Brazil and Russia), paint a picture of a burgeoning global acceptance of bitcoin’s economic role.
In conclusion, Bitcoin’s astonishing climb past $100,000 is a confluence of events. Trump’s pro-crypto policies, strategic appointments, and growing international interest all converge to suggest that Bitcoin’s meteoric rise is far from over. The future of this digital currency seems to be closely intertwined with the unfolding political landscape and the growing global embrace of cryptocurrencies.
