Bitcoin reached an all-time high, breaching $100000 for the first time, after the U.S. crypto-friendly policies on optimism over the election of President-elect Donald Trump. The appointment of Paul Atkins, a known cryptocurrency advocate as the incoming chair of the Securities and Exchange Commission has given a further boost to investor confidence.
Former SEC commissioner Atkins is expected to propose lighter regulations than predecessor Gary Gensler, who spearheaded a stern crackdown on the industry. This turn is in line with Trump’s pivot toward digital assets, which was a complete reversal of his earlier skepticism toward Bitcoin. In his latest campaign, Trump proposed the establishment of a national Bitcoin reserve and promised to make America the global center for innovation in cryptocurrencies.
Bitcoin’s meteoric rise to a high of as much as $90,000 last week follows lows from early November of as low as $74,000. This year, Bitcoin is up 130%, putting it ahead of traditional markets like the S&P 500, which gained 28% during the same period.
The cryptocurrency market is now closer to $3.8 trillion and has really started to embed itself into the mainstream financial system. Analysts attribute the rally to institutional adoption, regulatory clarity, and progress in blockchain technology.
Under the celebratory tone, there are some issues of volatility, high energy consumption, and Bitcoin use in illicit activities. But supporters say that it confirms the place of Bitcoin in the global finance market. Galaxy Digital CEO Mike Novogratz described it as a “paradigm shift” that marked maturity in the cryptocurrency.
With Trump’s administration expected to embrace digital assets, the industry expects a spate of friendly policies. With crypto enthusiasts cheering, the future of Bitcoin is an important aspect of this shifting financial landscape.
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