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President-elect Donald Trump, now a vocal supporter of Bitcoin, took to social media to congratulate cryptocurrency holders on surpassing the $100,000 milestone for the first time in history.
Bitcoin Price Surpasses $100,000
In a post on Truth Social, Trump expressed his excitement and support, stating, “CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!! Together, we will Make America Great Again!”
Trump’s Bitcoin endorsement aligns with his campaign promises to position the United States as the “crypto capital of the world.” His administration, set to begin on January 20, 2025, is expected to implement significant regulatory changes through agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
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These proposed adjustments are critical to fostering the growth of the digital asset ecosystem, which Trump believes will be a cornerstone of his presidency and a notable shift from President Biden’s administration and treatment of the nascent financial sector.
The timing of Trump’s announcement coincides with the resignation of current SEC Chair Gary Gensler, who stated that his last day at the agency will also be January 20. This transition is anticipated to pave the way for former SEC Commissioner Paul Atkins, who is expected to take the helm with a pro-crypto vision.
Legal chief Dan Gallagher of Robinhood Markets expressed confidence in Atkins, noting, “Paul Atkins was made for this job,” and predicting that he would tackle the industry’s concerns regarding “regulation by enforcement” from day one.
BTC Valuation Surpasses Major Public Companies
The recent surge past $100,000 has propelled Bitcoin’s market capitalization to over $2 trillion, making it a more substantial asset than most public companies, including tech giants like Nvidia, Apple, and Alphabet.
This valuation also surpasses the government bond markets of several countries, including Spain and Brazil, and approaches the market capitalization of the FTSE 100 Index in the UK.
Analysts are optimistic about the future, with Fadi Aboualfa, head of research at Copper Technologies, stating that reaching $100,000 indicates the beginning of a new phase in the bull market, one that appears resilient to external shocks.
Manuel Villegas, a digital assets analyst at Julius Baer, added that the demand for Bitcoin remains strong, suggesting the possibility of a supply squeeze in the coming year, similar to previous trends.
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Moreover, Trump’s return to the White House could signal a shift in government involvement in Bitcoin. During a Bitcoin conference earlier this year, Trump proposed the idea of creating a strategic stockpile of Bitcoin, starting with assets seized by the US government.
Allies like Robert Kennedy Jr. and Republican Senator Cynthia Lummis have even suggested that the government could purchase 1 million Bitcoin, worth approximately $100 billion at current prices, as a means to back the US dollar.
Starting Thursday, Bitcoin reached a new all-time high of $104,150 per coin, marking a substantial 6.6% surge within 24 hours. However, since that peak, the price has retraced to around $103,000
The question now is whether this upward trend can be sustained or if profit-taking by investors will lead to a correction for the leading digital asset. The future outlook will also depend on the next key support level, with $100,000 as a critical point that could facilitate further price increases.
Featured image from CNBC, chart from TradingView.com
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