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Bitcoin has finally broken above $100,000, hitting six figures for the first time in its history following an announcement from Donald Trump.
The incoming US President revealed on Wednesday that pro-crypto businessperson Paul Atkins would be the next chair of the US Securities and Exchange Commission (SEC), prompting the world’s leading cryptocurrency to shoot up by 7 per cent.
Atkins’ appointment signals a radical departure from current SEC chairman Gary Gensler, who has led a government crackdown on the crypto industry, with many figures hopeful that the nominee will lead to favourable regulation and price-boosting policies.
Market confidence is high, with investors hoping that bitcoin’s latest bull run can continue into the new year, however industry figures are urging people to be cautious.
“It’s important to note that bitcoin has yet to experience a significant correction,” said Arthur Azizov, chief executive of the crypto business B2BinPay.
“Based on this, it’s reasonable to conclude that a pullback is likely imminent – it’s just a matter of time. By year-end, I believe bitcoin’s price will consolidate around $100,000 before retracing to five-digit levels, potentially settling near $85,000 in the following months.”
Bitcoin’s latest price gains have pushed its market cap above $2 trillion for the first time, ranking it as the world’s seventh most valuable asset ahead of Silver, Meta and Tesla.
While its price volatility means it cannot yet be considered a safe-haven asset like silver or gold, becoming only the seventh asset to pass the $2 trillion milestone means it can be considered a mainstream asset class.
“With talks of a US Strategic Bitcoin reserve and more companies adding Bitcoin to their corporate treasuries, we may be on the precipice of true mainstream global adoption,” said Richard Teng, CEO of leading crypto exchange Binance.
“Today’s milestone marks a turning point in Bitcoin‘s journey from a niche asset to a mainstream financial instrument, attracting more institutional and retail investors, a powerful narrative and sentiment driver reinforcing crypto’s position in the financial landscape and encouraging broader adoption.”
