New York CNN —
Bitcoin hit $100,000 for the first time, setting a new record Wednesday, after President-elect Donald Trump announced administration changes that are seen as key to introducing crypto-friendly policies when he takes office in January.
A likely candidate is Paul Atkins, who President Trump plans to nominate to head the Securities and Exchange Commission (SEC), which regulates cryptocurrencies.
Atkins, a crypto advocate and former SEC commissioner, is expected to take a lighter touch in regulating cryptocurrencies than Gary Gensler, who will lead the commission under the Biden administration. Mr. Gensler, who has actively resisted the industry's expansion in the United States, is scheduled to resign on Inauguration Day.
Bitcoin hit $100,000 just hours after Atkins was announced as President Trump's nominee for SEC chairman.
This new milestone builds on the incredible rally that began after Trump was predicted to win the presidential election on November 6, which saw Bitcoin soar by $6,000 in one day, and by $74,000. A new record was achieved, exceeding the dollar amount. A week later, it had reached $90,000.
Bitcoin is up 130% so far this year, with post-election gains accounting for a large portion of that rise. That performance far outpaced the S&P 500, which rose 28% over the same period.
Trump, who was once skeptical of cryptocurrencies, has called them “not money” and labeled them “very unstable and thinly based.” But he made a 180-degree turn in the months leading up to his re-election in an effort to appeal to young male voters, who tend to own more cryptocurrencies than other demographic groups.
In July, President Trump headlined the largest cryptocurrency convention in Nashville and proposed creating a “Strategic National Bitcoin Reserve” where the government would auction off Bitcoins seized from criminals. (this is the current practice).
“If cryptocurrencies are going to define the future, I want them to be mined, minted, and manufactured in the United States,” President Trump said.
And in September, Trump launched his own cryptocurrency business called World Liberty Financial.
That same month, he also used Bitcoin to buy a hamburger at a Manhattan bar frequented by crypto enthusiasts. “History is being made,” he declared.
Additionally, President Trump's media company, which owns Truth Social, is reportedly in talks to acquire the cryptocurrency trading forum Bakkt, according to the Financial Times.
“If you like $100,000 in Bitcoin, you’ll love $1 million,” says Anthony, a prominent crypto advocate and founder and CEO of investment firm Professional Capital Management. Pompliano said in a post to X on Wednesday night. .
The crypto industry has focused its efforts on supporting Trump and the Republican Party during this election cycle, with major super PACs contributing approximately $131 million to elect pro-crypto candidates in Congressional races. did.
The Trump campaign began accepting cryptocurrency donations in May, raising millions of dollars in the move.
Now, with his victory cemented, the community is looking forward to a wave of pro-crypto policies, a reversal from the past four years under the Biden administration.
President Trump appears ready to fulfill his obligation. In addition to Atkins, he named Howard Lutnick, CEO of Cantor Fitzgerald and a prominent cheerleader for Tether, which operates one of the world's largest crypto assets.
Additionally, Bloomberg reported that he is considering creating the first-ever White House role dedicated solely to crypto policy.
However, cryptocurrencies have not found fans among many current financial regulators. For example, Federal Reserve Chairman Jerome Powell called Bitcoin a “speculative asset.”
In his view, Bitcoin has many of the same properties as gold, but U.S. consumers generally don't use gold as a primary payment method. “It's not a competitor to the dollar. It's a competitor to the gold medal,” he said at a press conference on Wednesday.
Powell himself is “not authorized” to own any cryptocurrencies, he said.
This story has been updated with additional information and context.
