Bitcoin Breaks $100,000 Amid Crypto Euphoria Under Trump’s Pro-Crypto Administration

Bitcoin surged past $100,000 for the first time on Thursday, driven by investor optimism over a crypto-friendly U.S. administration led by President-elect Donald Trump. The milestone marks a significant moment for digital assets, propelling Bitcoin to a high of $103,649 before settling at $98,803, up 0.95% on the day.

The cryptocurrency market has reached a record valuation of over $3.8 trillion this year, surpassing the market cap of Apple, which stands at $3.7 trillion. Bitcoin’s value has more than doubled in 2024 and increased by over 50% since Trump’s election victory last month.

Crypto Gains Political Backing

Trump, who once dismissed cryptocurrency as a scam, embraced it during his campaign, vowing to make the U.S. the “crypto capital of the planet.” His nomination of pro-crypto advocate Paul Atkins to lead the Securities and Exchange Commission (SEC) has further fueled optimism. Atkins, a former SEC commissioner, is well-versed in digital asset policies and has been instrumental in developing industry standards.

A new crypto advisory council, promised by Trump, has attracted interest from major players like Ripple, Kraken, and Circle.

Institutional and Retail Momentum

The rising institutional adoption of Bitcoin has been a driving force behind its price surge. U.S.-listed Bitcoin exchange-traded funds (ETFs), approved in January, have facilitated over $4 billion in investments since the election. Companies like MicroStrategy have also seen significant gains, with its Bitcoin holdings driving a 540% stock surge in 2024.

Challenges and Criticism

Despite its meteoric rise, Bitcoin faces challenges. Critics argue it is more akin to a speculative investment than a practical payment method. Federal Reserve Chair Jerome Powell likened Bitcoin to gold, describing it as “digital” and “highly volatile,” rather than a viable competitor to the U.S. dollar.

Additionally, concerns remain about Bitcoin’s energy consumption and its potential use in criminal activities. A recent joint operation by the U.S. and Britain disrupted a cryptocurrency-based global money laundering ring.

Resilience and Adoption

Bitcoin’s continued growth is seen as a testament to its resilience, even after past downturns like the 2022 collapse of FTX. Analysts predict that broader adoption by corporations and governments will help stabilize its volatility over time.

“Passive flows into ETFs, corporate treasury adoption, and nation-state acceptance will likely dampen future volatility,” said Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors.

As cryptocurrencies become increasingly integrated into the financial mainstream, Bitcoin’s momentum suggests it is here to stay.