Bitcoin Breaks $100,000 Barrier, Setting a New Milestone in Cryptocurrency History

Bitcoin has achieved a historic milestone, crossing the $100,000 mark for the first time, doubling its value this year and surging by approximately 45% in the past month. The cryptocurrency’s dramatic rise coincided with Donald Trump’s election as U.S. president, along with the victory of several pro-crypto lawmakers in Congress. This political shift has sparked optimism about a favorable regulatory environment for digital assets.

Mike Novogratz, CEO of crypto firm Galaxy Digital, described the event as a “paradigm shift,” highlighting the role of institutional adoption, tokenization advancements, and a clearer regulatory framework in driving Bitcoin’s ascent. “Bitcoin and the entire digital asset ecosystem are poised to enter the financial mainstream,” he added.

More than 16 years after its creation, Bitcoin is edging closer to widespread acceptance. Crypto analyst Justin D’Anethan remarked, “Crossing $100,000 is not just a milestone but a testament to shifting dynamics in finance, technology, and geopolitics.”

During his campaign, Trump positioned himself as a strong supporter of digital currencies, pledging to make the U.S. a global leader in the crypto sector. His administration has outlined plans to reduce regulatory scrutiny, a stark contrast to the oversight seen under current SEC Chair Gary Gensler, who recently announced his resignation effective January.

Trump plans to nominate Paul Atkins, a former SEC commissioner with a strong background in digital asset policy, to lead the SEC. Atkins has co-chaired initiatives promoting best practices for digital asset trading and issuance, signaling a regulatory approach more aligned with the crypto industry’s interests.

Several prominent crypto companies, including Ripple, Kraken, and Circle, are vying for positions on Trump’s proposed crypto advisory council. Industry executives see this as an opportunity to shape the administration’s overhaul of U.S. crypto policy.

Adding to the momentum, Trump recently launched a crypto-focused business, World Liberty Financial, which has been seen as a bullish sign by investors. Reports also suggest that Trump’s social media company, Truth Social, is in talks to acquire crypto trading firm Bakkt in an all-stock deal.

Elon Musk, a known cryptocurrency advocate and Trump ally, has further amplified the enthusiasm surrounding Bitcoin’s rise. The approval of U.S.-listed Bitcoin exchange-traded funds (ETFs) earlier this year played a significant role in Bitcoin’s recovery from its late-2022 lows, enabling broader institutional and retail participation in the market. Over $4 billion has flowed into Bitcoin ETFs since the election.

Digital asset hedge fund CEO Joe McCann noted a significant uptick in U.S. investor activity after the election. Options trading on BlackRock’s Bitcoin ETF has also been strong, with a high volume of call options signaling bullish sentiment.

Crypto-related stocks have mirrored Bitcoin’s growth, with shares of Bitcoin mining company MARA Holdings surging 65% in November. However, critics caution against the industry’s energy consumption and its vulnerability to fraud, as seen in the FTX collapse two years ago.

As Bitcoin’s value continues to climb, experts predict even greater heights. Steven McClurg, founder of Canary Capital, anticipates Bitcoin could reach $120,000 by Christmas, despite potential profit-taking by investors in the short term.

Bitcoin’s new all-time high underscores the growing influence of cryptocurrencies in global finance, marking a significant step toward mainstream adoption.