Bitcoin, the world’s most popular cryptocurrency, soared above $100,000 for the first time on Thursday, marking a historic milestone for digital assets. This unprecedented rise follows the election of Republican Donald Trump as President of the United States, an event that has significantly buoyed market sentiment regarding cryptocurrencies.
The cryptocurrency has more than doubled in value this year and gained approximately 45% in the four weeks since Trump’s sweeping election victory. The optimism stems not only from Trump’s campaign promises to support crypto innovation but also from the election of several pro-crypto lawmakers to Congress.
“We’re witnessing a paradigm shift. After four years of political purgatory, bitcoin and the entire digital asset ecosystem are on the brink of entering the financial mainstream,” said Mike Novogratz, founder and CEO of U.S. crypto firm Galaxy Digital.
Novogratz credits bitcoin’s meteoric rise to growing institutional adoption, advancements in blockchain technology, and a clearer regulatory framework. His comments underscore a broader belief among investors and analysts that bitcoin is no longer confined to niche markets but is on the cusp of mainstream acceptance.
“Bitcoin crossing $100,000 is more than just a milestone; it’s a testament to shifting tides in finance, technology, and geopolitics,” said Justin D’Anethan, a Hong Kong-based independent crypto analyst. “The figure, not that long ago dismissed as fantasy, stands as a reality.”
Throughout his campaign, Trump championed digital assets, pledging to make the United States the “crypto capital of the planet.” He even announced plans for the federal government to accumulate a national stockpile of bitcoin.
Many crypto investors are also optimistic about the regulatory environment under Trump, particularly as U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler announced plans to step down in January. Trump has signaled his intention to nominate Paul Atkins, a former SEC commissioner with extensive experience in digital asset policy, to head the agency.
Atkins has co-chaired the Token Alliance and worked with the Chamber of Digital Commerce, advocating for best practices in the issuance and trading of digital assets. His appointment is expected to usher in a new era of regulatory clarity and innovation for cryptocurrencies in the U.S.
Adding to the momentum, Trump plans to create a dedicated crypto advisory council to overhaul U.S. policy on digital assets. Leading crypto companies such as Ripple, Kraken, and Circle are reportedly vying for a seat at the table.
“Having a direct line to policymakers could be a game-changer for the industry,” said a senior executive at a digital asset firm.
Trump’s personal stake in the sector also bolsters confidence. His recently launched crypto venture, World Liberty Financial, has generated significant buzz, although details remain scarce. Furthermore, Trump’s social media company, Truth Social, is reportedly in advanced talks to acquire Bakkt, a major crypto trading firm.
Trump’s pro-crypto stance is echoed by his close ally, billionaire Elon Musk. Musk, a long-time advocate for digital assets, has praised the administration’s approach to fostering innovation in the sector.
“The alignment between Trump’s vision and Musk’s influence creates a powerful combination that could reshape the global crypto landscape,” said one market analyst.
Bitcoin’s rebound from its late-2022 slump, when it traded below $16,000, has been rapid. The approval of U.S.-listed bitcoin exchange-traded funds (ETFs) earlier this year has played a pivotal role in the cryptocurrency’s resurgence.
The SEC, which had previously blocked bitcoin ETFs over investor protection concerns, reversed its stance in January. This regulatory shift has enabled a wave of institutional investors to gain exposure to bitcoin. Since the election, over $4 billion has flowed into U.S.-listed bitcoin ETFs, highlighting the growing appetite for digital assets.
“We were trading basically sideways for about seven months, then immediately after November 5, U.S. investors resumed buying hand-over-fist,” said Joe McCann, CEO and founder of Asymmetric, a Miami-based digital assets hedge fund.
Options trading on BlackRock’s bitcoin ETF has also seen strong activity. Call options—bets on the price going up—have outpaced puts by a ratio of 22 to one, signaling widespread bullish sentiment.
Crypto-related stocks have similarly benefited from the bitcoin rally. Shares of MARA Holdings, a leading bitcoin miner, are up approximately 65% in November alone.
Despite the euphoria, the crypto market’s rapid rise has its detractors. Critics point to the industry’s history of scandals, including the collapse of FTX and the subsequent imprisonment of its founder, Sam Bankman-Fried.
Concerns also persist over the environmental impact of bitcoin mining, which consumes vast amounts of energy. Meanwhile, crypto crime remains an issue, with hacks and scams continuing to make headlines.
Market participants are closely monitoring bitcoin’s performance as it hovers above the $100,000 mark. While some investors are likely to take profits, others believe the rally is far from over.
“But once we flush out those sell orders, this could go higher still, and very rapidly,” said Steven McClurg, founder of Canary Capital, a digital assets investment firm. He predicts bitcoin could hit $120,000 by Christmas.
Bitcoin’s rise represents more than just a win for cryptocurrency enthusiasts; it signals a shift in the financial landscape. Traditional institutions, once skeptical of digital assets, are increasingly embracing the technology.
The adoption of blockchain-based payment systems, the tokenization of assets, and the emergence of decentralized finance (DeFi) platforms are reshaping how value is transferred and stored.
For the U.S., Trump’s embrace of crypto could solidify its position as a global leader in financial innovation. However, this will require balancing innovation with regulatory oversight to address risks such as fraud and market manipulation.
Bitcoin’s journey to $100,000 has been anything but smooth, marked by skepticism, regulatory hurdles, and market volatility. Yet, the milestone serves as a testament to the resilience and adaptability of the cryptocurrency industry.
As the world watches how Trump’s administration handles its crypto promises, one thing is clear: digital assets are no longer on the fringe—they are rapidly becoming a cornerstone of the global financial system.
