Bitcoin Price Reaches $100,000 for the First Time in History
President-elect Donald Trump, a supporter of Bitcoin, congratulated cryptocurrency holders on the asset surpassing $100,000 for the first time.
Bitcoin Price Surpasses $100,000
In a post on Truth Social, Trump stated, “CONGRATULATIONS BITCOINERS!!! $100,000!!! YOU’RE WELCOME!!! Together, we will Make America Great Again!”
Trump's endorsement aligns with his campaign promise to establish the U.S. as the “crypto capital of the world.” His administration plans to implement significant regulatory changes through the SEC and CFTC.
These changes aim to foster digital asset growth, marking a shift from President Biden's approach to the financial sector.
Trump's announcement coincides with the resignation of SEC Chair Gary Gensler, effective January 20. Former SEC Commissioner Paul Atkins is expected to lead with a pro-crypto agenda.
Dan Gallagher, legal chief at Robinhood Markets, expressed confidence in Atkins, stating he would address industry concerns about "regulation by enforcement" from the outset.
BTC Valuation Surpasses Major Public Companies
The surge past $100,000 has increased Bitcoin's market capitalization to over $2 trillion, exceeding that of major companies like Nvidia, Apple, and Alphabet. This valuation also surpasses the government bond markets of Spain and Brazil, approaching the market cap of the FTSE 100 Index in the UK.
Analysts predict a bullish trend; Fadi Aboualfa from Copper Technologies noted that reaching $100,000 signals the start of a new phase in the bull market. Manuel Villegas from Julius Baer highlighted strong demand for Bitcoin, indicating potential supply constraints ahead.
Trump has suggested creating a strategic stockpile of Bitcoin using seized assets. Allies have proposed that the government could acquire 1 million Bitcoin, valued at approximately $100 billion.
Bitcoin reached an all-time high of $104,150 per coin, reflecting a 6.6% increase within 24 hours. The price later retraced to around $103,000.
The sustainability of this upward trend remains uncertain, contingent on investor behavior and key support levels, particularly at $100,000, which may facilitate further increases.
Featured image from CNBC, chart from TradingView.com