On Thursday, December 5th, Bitcoin surpassed $100,000 for the first time, hitting a new all-time high. Market predictions suggest that the re-election of President Trump would lead to a more lenient regulatory approach towards the cryptocurrency industry, boosting the surge of Bitcoin.
Bitcoin broke through $100,000 during early morning trading in Asia on Thursday, reaching a historic high of $103,713.
During his campaign, Trump pledged to support digital assets, aiming to make the United States the “epicenter of cryptocurrency on Earth” and to hold Bitcoin in national reserves. Trump’s strong comeback has bolstered the confidence of cryptocurrency investors.
According to data from CoinGecko, Bitcoin’s value has more than doubled this year. In the first month of Trump’s re-election, Bitcoin saw a surge of over 50%.
In the recent U.S. election, a significant number of congress members supporting cryptocurrencies emerged victorious.
On Wednesday, Trump announced the nomination of Paul Atkins as the next chairman of the U.S. Securities and Exchange Commission (SEC), further driving the appreciation of Bitcoin.
Atkins is a supporter of cryptocurrencies. He served as an SEC commissioner from 2002 to 2008 and founded the financial and cryptocurrency advisory firm Patomak Global Partners in 2009.
The Trump administration transition team stated that Atkins has been the co-chair of the Token Alliance under the Chamber of Digital Commerce since 2017. The Chamber of Digital Commerce is dedicated to promoting the development of digital assets.
Nevertheless, it remains uncertain how long Bitcoin can maintain its position above $100,000. Earlier on Thursday, it retraced to $101,933.
Just like everything in the volatile world of cryptocurrencies, the future of Bitcoin is unpredictable.
Just two years ago, Bitcoin dropped below $17,000 following the collapse of the cryptocurrency exchange FTX.
The collapse of FTX severely shook people’s confidence in cryptocurrencies as a whole.
While some are optimistic about Bitcoin’s current surge, experts continue to warn about the investment risks of cryptocurrencies.
“I would say, keep it as simple as possible,” cautioned Adam Morgan McCarthy, a research analyst at the globally renowned digital asset data provider Kaiko. “Do not take on risks beyond your capacity to bear.”
(This article was adapted from reports by Reuters and the Associated Press)