Bitcoin, the world's largest cryptocurrency has broken its $1,00,000 ceiling for the first time, hitting an all-time high on December 5 amid steps from Donald Trump which show his backing for the sector.
Trump has “spurred expectations” that his next term will create a friendly regulatory environment for cryptocurrencies. On December 4 he nominated Paul Atkins, a known crypto proponent, to be the next chief of the US Securities and Exchange Commission (US SEC).
Bitcoin was at $1,02,388.46 on Wednesday night, with market cap up 6.84 percent to $2.03 trillion, according to data on Coinmarketcap. This height has come over 16 years since its creation and after years of highs and lows.
Through the year, the token has more than doubled in value, rising 45 percent since Trump won the US elections on November 5.
Mike Novogratz, founder and CEO of crypto firm Galaxy Digital, told Reuters, “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. This momentum is fuelled by institutional adoption, advancements in tokenisation and payments, and a clearer regulatory path.”
Justin D'Anethan, a Hong Kong-based independent crypto analyst told the news agency, “Bitcoin crossing $1,00,000 is more than just a milestone; it's a testament to shifting tides in finance, technology, and geopolitics."
But not all is rose-tinted glasses, some market watchers are cautious now that Bitcoin has broken through the $1,00,000 level. Steven McClurg, founder of Canary Capital, a digital assets investment firm was cautious but optimistic, saying, “Once we flush out those sell orders, this could go higher still, and very rapidly… Bitcoin's prices can hit $120,000 by Christmas.”
Trump embraced digital assets during his campaign, promising to make the United States the "crypto capital of the planet" and to accumulate a national stockpile of bitcoin.
A slew of crypto companies including Ripple, Kraken, and Circle are jostling for a seat on Trump's promised crypto advisory council, seeking a say in his planned overhaul of U.S. policy, according to several digital asset industry executives.
Trump's businesses may also have a stake in the sector. He unveiled a new crypto business, World Liberty Financial, in September. Although details about the business have been scarce, investors have taken his interest in the sector as a bullish signal.
Trump's social media company is in advanced talks to buy crypto trading firm Bakkt, the Financial Times reported last week, citing two people with knowledge of the talks.
Billionaire Elon Musk, a major Trump ally, is also a proponent of cryptocurrencies.
(By arrangement with livemint.com)
