Introduction
Today Tech News: Dec 5 (Reuters)—Bitcoin soared to the $100,000 threshold on Thursday as hopes of pro-crypto policies from President-elect Donald Trump’s administration grew. This speculation runs rampant against the backdrop of a 2024 crypto market already surging to impressive heights and speculations surrounding a regulatory framework presented under Trump.
“Bitcoin is up over 100% this year, rising around 45% the month after Trump’s landslide election victory. The rally has been fueled further by pro-crypto lawmakers who have come to Congress. Bitcoin traded at $100,027 as of 2:40 AM GMT, up 2.2% from the prior session and having just broken above a previous record high of $100,277.
A Pivotal Moment for Digital Assets
We’re witnessing a defining moment in the financial landscape,” said Galaxy Digital’s chief executive, Mike Novogratz. “Bitcoin and other digital assets are being driven into mainstream acceptance through institutional adoption, tokenization innovation, and regulatory clarity.
More than 16 years after its birth, Bitcoin is on the verge of being a fixture of global finance. Its latest achievement, however, suggests a paradigm shift despite past controversies.
Crossing $100,000 is not only a mind-blowing number milestone — it marks a tectonic shift in finance, technology and geopolitics,” said Justin D’Anethan, an independent crypto analyst.
Trump’s Pro-Crypto Stance
Throughout his campaign, Trump promised to make the U.S. the “crypto capital of the world,” even proposing a national Bitcoin reserve. His administration will likely relax the regulatory pressures enacted by Gensler’s tenure at the SEC after he leaves his post in January.
In a move that some hope would shift the agency’s focus back toward its core customers, Trump,” [said The Hill] “plans to name Paul Atkins, a former commissioner at the SEC and one of the co-chairs of the Token Alliance, as the upcoming chief.” This move has been interpreted as a strong indication that the administration seeks to cultivate the digital asset ecosystem.
Leading crypto firms Ripple, Kraken, and Circle compete for seats on Trump’s proposed crypto advisory council. These firms aim to shape the trajectory of U.S. crypto policy during Trump’s term.
Adding to the excitement, Trump recently announced his crypto venture, World Liberty Financial. Although the specifics are scarce, this news has been seen as a bullish sign for the sector.
Institutional Adoption and Market Dynamics
Bitcoin’s stellar rise was partly driven by the early approval of Bitcoin-oriented exchange-traded funds (ETFs). Since the election, institutional investors — cautious previously because of regulatory uncertainties — have injected more than $4 billion into these ETFs.
After an extended period of sideways movement, U.S. investor activity picked up on November 5 with an upward push in prices,” Joe McCann, the chief executive officer of Asymmetric, a digital assets hedge fund, said in a statement.
The robust start of options tied to BlackRock’s ETF, with call options far outweighing puts, also underscored the market’s upbeat feel.
Challenges Ahead
Yet even with the optimism, Bitcoin’s surge is not without skepticism. Critics have cited the energy-intensive processes of cryptocurrency mining and persistent worries about fraud and security breaches.
Soon after, the collapse of FTX and the jailing of its founder, Sam Bankman-Fried, are still fresh in many investors’ minds. Piling on are volatile markets that could lead some traders to look into profit-locking strategies.
Canary Capital founder Steven McClurg thinks the rally still has legs. “So we could see the market even move higher once we have some profit-taking.” I expect Bitcoin to hit $120,000 by Christmas,” he explained.
The Road Ahead
With Bitcoin breaking the $100,000 barrier, the crypto space stands ready for its next phase during a new presidency. Given Trump’s stance on pro-crypto policies and institutional backing, the digital asset market could reach new heights in the months ahead.
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