Bitcoin Breaks $100,000 for the First Time: Trump's Crypto-Friendly SEC Chair Nominee Sparks Market FrenzyHONG KONG, December 5 (AFP) Bitcoin surged past the $100,000 mark for the first time on December 5, fueled by a market euphoria sparked by Donald Trump's decision to nominate cryptocurrency supporter Paul Atkins as chairman of the US Securities and Exchange Commission (SEC). The appointment ignited optimism that the incoming administration will ease regulations on the crypto industry, triggering a sharp price rally
Bitcoin Breaks $100,000 for the First Time: Trump's Crypto-Friendly SEC Chair Nominee Sparks Market Frenzy
HONG KONG, December 5 (AFP) Bitcoin surged past the $100,000 mark for the first time on December 5, fueled by a market euphoria sparked by Donald Trump's decision to nominate cryptocurrency supporter Paul Atkins as chairman of the US Securities and Exchange Commission (SEC). The appointment ignited optimism that the incoming administration will ease regulations on the crypto industry, triggering a sharp price rally.
Since Trump's election victory in early November, Bitcoin's price has steadily climbed, surpassing $100,000 and briefly touching a high of $100,380. During his campaign, Trump pledged to make the US the "global capital of Bitcoin and cryptocurrencies." Since his electoral win, Bitcoin's price has increased by over 50%, and its year-to-date gain stands at approximately 140%.
In recent weeks, however, the Bitcoin rally had slowed, with prices hovering below the $100,000 mark as market participants awaited a new catalyst. That catalyst arrived with Trump's nomination of Atkins.
Atkins served as an SEC commissioner from 2002 to 2008. He founded the risk advisory firm Patomac Global Partners in 2009, whose clientele spans banking, trade, and cryptocurrency sectors. A statement from Trump's transition team noted that Atkins has served as co-chair of the Digital Chamber of Commerce, dedicated to promoting the use of digital assets, since 2017.
Trump described Atkins in a statement as "a proven leader with a common-sense regulatory approach," emphasizing his commitment to building "robust and innovative" capital markets. He added, "He also recognizes that digital assets and other innovations are vital to making America greater than ever before."
Atkins's appointment will replace incumbent SEC Chair Gary Gensler, who spearheaded a crackdown on the crypto industry following the 2022 market crash. Even so, the SEC approved two new exchange-traded funds (ETFs) this year allowing greater public investment in both Bitcoin and Ethereum (the second-largest cryptocurrency by market capitalization).
Stephen Innes, managing partner at SPI Asset Management in Switzerland, commented, "Atkins is a prominent conservative who has been critical of the SEC's tough stance on crypto companies, and is expected to take a far more crypto-friendly approach." Innes added, "This strategic shift has energized the crypto sphere, with investors optimistic that a more lenient regulatory environment under Atkins' leadership is likely. This aligns with the generally pro-growth, lighter-touch approach towards the booming digital asset market favored by the Republican party."
Despite previously labeling cryptocurrencies a "scam," Trump later reversed his stance, becoming a major crypto proponent during his campaign. In September, he announced a joint venture with his son and entrepreneurs to launch a digital currency platform called World Free Finance. He also forged a close relationship with tech mogul Elon Musk.
Reacting to the $100,000 Bitcoin milestone, Musk posted a single word on X ("Wow") to express his astonishment. Dan Coatsworth, an analyst at AJ Bell Investment Company, observed, "The key expectation is that Atkins will reduce regulation on the cryptocurrency industry, and you start to understand why investors are piling into digital currencies and related stocks."
Industry-anticipated measures include the establishment of a strategic Bitcoin reserve in the US, primarily comprised of court-seized Bitcoins. This could potentially prompt other nations to grant the virtual currency greater legitimacy. Sammer Haven, from online trading platform XS.com, added that the prospect of deregulation would raise hopes of "seeing cryptocurrency more deeply integrated into the American economic life."
Bitcoin has long been criticized for its use as an untraceable payment method in the dark web, a hidden part of the internet where some engage in criminal activities. It's often condemned for facilitating money laundering and ransomware attacks.
However, El Salvador's 2021 declaration of Bitcoin as legal tender significantly boosted its global adoption. Ubiquitous Bitcoin project billboards across El Salvador reflect the cryptocurrency's growing global influence. Atkins's crypto-friendly outlook and the potential policy shift under the Trump administration will undoubtedly present new opportunities and challenges for Bitcoin's future. This event impacts not only the Bitcoin market but also the global financial landscape. Investors and regulators will closely monitor Atkins's policy direction and its impact on the global cryptocurrency market. Bitcoin's trajectory may hinge on the US government's regulatory stance towards this emerging technology. The $100,000 milestone is a notable turning point in this complex scenario, signaling growing acceptance of Bitcoin as a digital asset. However, the risks and challenges surrounding Bitcoin remain and should be treated cautiously.
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