The digital currency Bitcoin surpassed the R1.8 million mark (equivalent to $100,000) on Thursday, marking a historic peak. US President-elect Donald Trump attributed this significant rise to his electoral success, addressing his followers on social media with a message of gratitude. The cryptocurrency experienced an impressive increase of over 50 percent since Trump’s election, further solidifying its position in the financial markets.
The milestone in Bitcoin’s value coincided with President-elect Trump’s nomination of Paul Atkins to lead the United States Securities and Exchange Commission (SEC). This strategic appointment has bolstered optimism among cryptocurrency enthusiasts, suggesting potential deregulation efforts under the new administration. Atkins, a seasoned figure in the cryptocurrency arena, previously served as an SEC commissioner from 2002 to 2008 and founded the risk consultancy firm Patomak Global Partners in 2009. His expertise spans clients in banking, trading, and cryptocurrency sectors.
An announcement from the Trump transition team highlighted Atkins’ role as co-chairman of the Digital Chamber of Commerce since 2017, an organization dedicated to promoting digital asset utilization. Trump lauded Atkins in a statement, stating:
“Paul is a proven leader for common sense regulations. He also recognises that digital assets and other innovations are crucial to making America greater than ever before.”
This nomination replaces Gary Gensler, who was instrumental in enforcing stricter regulations on the cryptocurrency sector following a market downturn in 2022. Despite past regulatory challenges, the SEC this year approved the trading of two new financial products known as exchange-traded funds (ETFs), broadening public access to cryptocurrency investments.
Interestingly, President-elect Trump’s position on cryptocurrencies has undergone a transformation. Previously dismissing digital currencies as a “scam,” Trump emerged as a strong advocate during his election campaign. In September, he unveiled plans to launch his own cryptocurrency platform, World Liberty Financial, alongside his sons and various entrepreneurs. This shift underscores a strategic embrace of digital assets, aligning with his broader economic vision.
Furthermore, Trump has cultivated a close relationship with Elon Musk, a prominent entrepreneur and cryptocurrency enthusiast. Musk is set to lead a new government-efficiency group aimed at reducing federal waste. His support has been pivotal, reportedly contributing over $100 million to Trump’s campaign efforts and frequently endorsing his candidacy on the X social media platform. Upon Bitcoin reaching the $100,000 threshold, Musk reacted succinctly on X with the exclamation:
“Wow.”
The surge in Bitcoin’s value reflects a broader trend of increasing institutional interest and shifting regulatory landscapes, which analysts believe are enhancing the legitimacy of digital assets. Matt Britzman, a senior analyst at Hargreaves Lansdown, commented:
“Institutional interest and regulatory shifts are adding legitimacy, turning what once seemed like a fringe asset into a force reshaping finance. Love it or doubt it, bitcoin’s climb is rewriting the rulebook for digital assets.”
Looking ahead, one of the anticipated measures under Trump’s administration is the establishment of a strategic Bitcoin reserve in the United States. This reserve would primarily consist of tokens seized by the courts, potentially encouraging other nations to acknowledge and legitimize virtual currencies further.
