Bitcoin Surpasses $100,000 Amid Optimism for Crypto-Friendly Policies

Late Wednesday evening, the price of Bitcoin soared past the long-anticipated $100,000 milestone for the first time in history. In early Thursday trading, Bitcoin was valued at $102,485.78, reflecting a gain of over 3%, with earlier peaks reaching as high as $103,844.05. The cryptocurrency has experienced a remarkable 140% increase in 2024 and a 48% rise since the recent elections.

This surge follows President-elect Donald Trump’s announcement to nominate Paul Atkins as the chair of the Securities and Exchange Commission (SEC), a move that many in the crypto community view as a fulfillment of Trump’s commitment to support the industry. This decision is particularly significant as it replaces Gary Gensler, whose regulation-by-enforcement approach has drawn criticism from crypto advocates.

For long-time Bitcoin investors, the moment is one of celebration. Many have held onto their investments through various market cycles, enduring skepticism and hostility from governments and financial institutions alike. The foundational philosophy of Bitcoin, introduced by its creator Satoshi Nakamoto during the 2008 financial crisis, emphasizes a decentralized form of currency designed to facilitate direct transactions without intermediaries.

In recent years, the cryptocurrency market has gained traction among institutional investors. The launch of the first spot Bitcoin ETFs by major firms like BlackRock, Fidelity, and Invesco at the beginning of this year is seen as a pivotal moment for Bitcoin, akin to an “IPO.” The growing institutional demand has significantly contributed to the cryptocurrency’s rising value. Additionally, Rick Wurster, the incoming CEO of Charles Schwab, indicated that the firm is preparing to enter spot crypto trading, pending expected regulatory changes.

Federal Reserve Chair Jerome Powell weighed in on Bitcoin’s status during the DealBook conference, likening it to digital gold. While he noted that Bitcoin is not yet widely used as a payment method or a store of value, he acknowledged its competitive stance against gold rather than the dollar.

“We’re witnessing a paradigm shift,” said Mike Novogratz, CEO of Galaxy Digital. He expressed optimism that, after years of regulatory uncertainty, Bitcoin and the broader digital asset ecosystem are poised to enter the financial mainstream.

Bitcoin had been anticipated to reach the $100,000 mark following the U.S. presidential election, but investors’ enthusiasm propelled it to this landmark sooner than expected, with the price nearly reaching $99,849.99 on November 22.

Looking ahead, there is optimism that the new administration will implement several pro-crypto initiatives, such as establishing a national strategic Bitcoin reserve, eliminating taxes on crypto transactions, and facilitating more public equity markets for cryptocurrencies.

“Over the long term, I’m bullish,” Novogratz added, cautioning that while the trajectory may not be linear, a pro-crypto administration will probably attract global attention. Investors should remain strategic, considering when to take gains as the market grows.