Bitcoin hit a record high of $100,000 on December 4, 2024, following President-elect Donald Trump’s announcement of Paul Atkins as his nominee for the Securities and Exchange Commission (SEC) chair. This surge, linked to expectations of pro-cryptocurrency policies, marks a pivotal moment for the digital asset.
HOT: Ethereum rockets past $3,900: Could $5K be next?
Bitcoin reaches record $100,000 ATH after Trump’s SEC nominee announcement
Trump’s administration picks, particularly Atkins, are seen as catalysts for a shift in regulatory approach towards cryptocurrencies. Atkins, a former SEC commissioner and crypto advocate, is anticipated to adopt a more lenient stance compared to Gary Gensler, the current chair, who has been noted for his stringent regulations in the industry. Bitcoin’s price jumped shortly after Atkins’ nomination, showcasing a growing optimism among investors regarding the upcoming administration’s policy changes.
The momentum for Bitcoin follows Trump’s presidential win projected on November 6, during which the cryptocurrency saw a $6,000 increase in a single day, reaching $74,000. Just a week later, it continued this ascent, climbing to $90,000. Year-to-date, Bitcoin has surged by 130%, making its gains significantly higher than that of the S&P 500, which stands at 28%.
The former president, who previously expressed skepticism about cryptocurrencies, notably described Bitcoin as “not money” and deemed it “highly volatile.” In recent months, however, he has pivoted his stance, aiming to appeal to younger voters, a demographic that is generally more involved in crypto investments.
Trump’s efforts included attending a major crypto convention in Nashville where he proposed the establishment of a “strategic national bitcoin stockpile,” expressing his desire for digital assets to be “mined, minted, and made in the USA.” In addition, he launched his own cryptocurrency venture named World Liberty Financial in September, alongside purchasing items with Bitcoin from crypto-friendly venues.
In combination with this renewed enthusiasm, Trump’s campaign effectively engaged the cryptocurrency sector, raising millions through crypto donations and receiving significant support from pro-crypto PACs during the election cycle, totaling around $131 million.
Investments in Bitcoin exchange-traded funds (ETFs) have surged, pulling in about $32 billion this year, with over $8 billion following Trump’s electoral success. This uptick aligned with increased trading activity, as the crypto market as a whole has seen an influx of approximately $1.3 trillion since his victory.
The startups Nvidia thinks are the future of AI
Despite the optimism from crypto proponents in response to the incoming administration, skepticism remains among some regulators. Federal Reserve Chair Jerome Powell remarked that Bitcoin effectively competes with gold rather than traditional currencies, labeling it a speculative asset. Furthermore, he himself is not permitted to hold any cryptocurrencies.
How Trump pushed Bitcoin over $100K at a glance:
- Historically, Trump criticized Bitcoin, calling it “not money” and “highly volatile.”
- Recently, he reversed this stance, signaling a pro-crypto narrative during his campaign to attract younger, crypto-savvy voters.
- Actions like attending crypto conventions and proposing a “national Bitcoin stockpile” demonstrated a newfound commitment to digital assets.
- Trump announced Paul Atkins, a known crypto advocate and former SEC commissioner, as his pick for SEC chair.
- This nomination signaled a potential shift in regulatory approach to favor lenient policies on cryptocurrencies.
- Investors interpreted this as a departure from Gary Gensler’s stricter stance, driving optimism in the market.
- Crypto investors and institutions anticipated pro-crypto policies, including reduced SEC crackdowns and clearer guidelines for Bitcoin exchange-traded funds (ETFs).
- The perception of a friendlier regulatory environment under Trump’s administration spurred institutional and retail buying.
- Trump’s crypto-focused campaign fundraising demonstrated the practical use and acceptance of digital assets.
- His World Liberty Financial cryptocurrency initiative aligned with broader blockchain adoption narratives, boosting confidence in the sector.
- Trump’s rhetoric emphasized “Bitcoin mined, minted, and made in the USA,” appealing to nationalistic and economic sentiments.
- This strengthened Bitcoin’s image as a safe haven asset, particularly during an administration shift perceived as supportive of alternative financial systems.
- Following Trump’s SEC pick announcement, Bitcoin ETFs saw significant inflows, with $8 billion invested post-election.
- The crypto market, already buoyed by expectations, experienced a surge in trading volume, pushing Bitcoin to a new all-time high.
- Companies anticipating favorable crypto regulations ramped up Bitcoin acquisitions, reinforcing its position as “digital gold.”
- Investors bet on Bitcoin as a hedge against potential economic policy changes under Trump’s administration.
- Trump’s victory also brought promises of economic deregulation, which historically fosters risk-on behavior in financial markets.
- Bitcoin benefited as a high-yield, speculative asset, amplifying its upward momentum.
Featured image credit: Traxer/Unsplash
