Bitcoin reached a significant milestone on Wednesday, hitting $100,000 for the first time. This surge came after President-elect Donald Trump revealed his administration picks, who are expected to support crypto-friendly policies upon taking office in January.
One key pick is Paul Atkins, set to be nominated to lead the Securities and Exchange Commission (SEC), the regulatory body overseeing cryptocurrency. Atkins, a former SEC commissioner and crypto advocate, is anticipated to adopt a more lenient approach towards regulating cryptocurrency compared to the current SEC chair, Gary Gensler.
Following the announcement of Atkins as Trump's choice for SEC chair, Bitcoin swiftly rose to $100,000, continuing its remarkable rally that began after Trump's projected win on November 6. This rally saw Bitcoin surge by $6,000 in a single day, propelling it to a new record above $74,000, and subsequently hitting $90,000 a week later.
Bitcoin has surged by 130% this year, with a significant portion of its gains attributed to the post-election rally. This performance far exceeds that of the S&P 500, which has seen a 28% increase over the same period.
Despite previously expressing skepticism towards cryptocurrency, Trump's stance evolved as he sought to appeal to younger male voters who are more likely to own crypto assets. In a notable shift, Trump attended a major crypto convention in Nashville, where he pledged to establish a national bitcoin stockpile and retain seized bitcoins instead of auctioning them off.
In a further show of support for cryptocurrency, Trump launched his own cryptocurrency business and made purchases using bitcoin. His media company is reportedly in talks to acquire a crypto trading forum.
The cryptocurrency industry backed Trump during the election, contributing significant funds to elect pro-crypto candidates. Trump's campaign, which started accepting crypto donations, raised substantial amounts through this initiative.
Looking ahead, Trump's administration is expected to introduce pro-crypto policies, with considerations for creating a dedicated White House role for crypto policy. However, some financial regulators, like Federal Reserve Chair Jerome Powell, remain cautious about cryptocurrency, viewing it as a speculative asset akin to gold.
