Bitcoin surged past $100,000 for the first time on Thursday, as traders reacted positively to President Donald Trump’s decision to appoint a crypto supporter to lead the U.S. Securities and Exchange Commission (SEC). This move reinforced optimism that the new administration will push for deregulation of the cryptocurrency sector.
The digital currency hit the milestone, continuing a remarkable rally since Trump’s victory in the November 5 election. Throughout his campaign, Trump had pledged to make the U.S. the “bitcoin and cryptocurrency capital of the world.”
Since Trump’s win, Bitcoin has surged more than 50%, and around 140% since the start of the year. However, its momentum had stalled in recent weeks, hovering just below the $100,000 mark as traders awaited new catalysts. The turning point came when news broke that Trump had nominated prominent crypto advocate Paul Atkins to chair the SEC.
Atkins, an SEC commissioner from 2002 to 2008, is known for his advocacy of the cryptocurrency industry. He founded the consultancy firm Patomak Global Partners in 2009, whose clients include firms in banking, trading, and cryptocurrency. Since 2017, Atkins has also served as co-chair of the Digital Chamber of Commerce, which promotes digital assets.
In a statement, Trump praised Atkins, calling him a “proven leader for common-sense regulations” and highlighting his commitment to fostering “robust, innovative” capital markets. Trump also emphasized that Atkins recognizes the importance of digital assets to America’s future.
Atkins will replace Gary Gensler, who led a crackdown on the cryptocurrency sector after a 2022 market downturn. Despite this, the SEC recently approved the trading of two new cryptocurrency financial products, known as ETFs, marking a shift towards broader public access to digital currencies.
Stephen Innes of SPI Asset Management noted that Atkins, a conservative legal expert with a history of criticizing the SEC’s tough stance on crypto, is expected to steer a more crypto-friendly course. “This strategic move has electrified the crypto community,” said Innes, fueling optimism about a more lenient regulatory environment for digital assets.
Trump, who once labeled cryptocurrencies a “scam,” has become a strong supporter of Bitcoin, particularly during his election campaign. In September, he announced plans to launch a digital currency platform, World Liberty Financial, alongside his sons and business partners. Trump has also forged a close relationship with tech mogul Elon Musk, who reportedly spent over $100 million to help Trump regain the White House.
Musk, who frequently supported Trump’s candidacy on his X social media platform, reacted to Bitcoin’s $100,000 milestone with a simple “Wow” on X.
Dan Coatsworth, an analyst at AJ Bell, attributed the Bitcoin surge to expectations of regulatory rollbacks under the new administration. “Layer on top expectations he will strip back regulations on the crypto industry and you begin to understand why investors have piled into the digital currency and related stocks,” he said.
Crypto industry advocates are hopeful that these regulatory changes could lead to broader integration of cryptocurrencies into the U.S. economy. Samer Hasn of XS.com pointed to the possibility of relaxed regulation fueling hopes for deeper economic integration of cryptocurrencies.
Despite Bitcoin’s turbulent history, including its volatility and its association with illicit activities on the dark web, the digital currency continues to gain mainstream acceptance. Bitcoin was adopted as legal tender by El Salvador in 2021, though a 2023 study found that 88% of Salvadorans had never used it.
As cryptocurrencies gain traction, the future of the digital asset market remains uncertain, with evolving regulations and shifting public perception playing crucial roles in determining its place in the global economy.
