Bitcoin hit the landmark $100,000 level on Dec. 5, following Securities and Exchange Commission Chair Gary Gensler’s resignation announcement and President-elect Donald Trump’s nomination of Paul Atkins for the SEC chair position.
“I think Bitcoin over the next year is looking pretty positive given the U.S. administration’s plans to potentially accumulate Bitcoin and the fact that they’re kind of pro-Bitcoin projects,” Bloomberg Macro Strategist Mark Cudmore said. “They’re going to encourage more institutions to get involved.”
Following the announcement of Atkins’ nomination on Dec. 4, Bitcoin’s exchange price crossed the $100,000 mark for the first time and traded as high as $103,800 within 24 hours. After president-elect Donald Trump’s victory on Nov. 5, Bitcoin continued to break all-time highs as investors expect his administration to adopt a more crypto-friendly stance than the Biden administration.
Bitcoin opened at $67,000 on Election Day, delivering monthly returns of over 40% as the cryptocurrency’s price passed the six-figure mark. With a market capitalization hovering around $2 trillion, Bitcoin is the seventh largest asset by market cap, overtaking silver, Meta Platforms Inc. and the Vanguard Total Stock Market ETF in recent weeks.
As the U.S. approaches a second term under the Trump administration, now accompanied by a newly appointed SEC chair, analysts are increasingly optimistic about the future of Bitcoin and the broader cryptocurrency regulation space.
The cryptocurrency market has experienced significant growth throughout the year, with Bitcoin’s exchange price rising by 130% year-to-date. The asset’s rally in the first half of the year was driven by the SEC’s approval of spot Bitcoin exchange-traded funds in January, facilitating greater market access for retail investors.
The SEC’s announcement on Nov. 21 that Gensler, who has spearheaded the U.S. government’s crackdown on the crypto industry, would officially resign has further fueled Bitcoin’s recent price surge. Throughout his campaign, Trump said he would position the U.S. as the “crypto capital of the planet” and push for legislative and regulatory changes that crypto industry players have long advocated for. Gensler’s resignation made way for the Trump administration to reshape the U.S. government’s approach to crypto regulation.
“We’re embracing the future with crypto and leaving the slow and outdated big banks behind,” Trump said in a video from his Mar-a-Lago estate in September. Atkins, who will be the SEC chair in January 2025, previously served as the SEC Commissioner from 2002 to 2008.
He was recognized for his strong free-market outlook and pushing for greater transparency of new SEC rules. He also previously served as a member of Trump’s Strategic and Policy Forum during his first term.
“I think he’s very solid, philosophically I think he’s aligned with the President-elect, but he’s a seasoned hand,” former Federal Deposit Insurance Corp. Chair Sheila Bair said. “He understands the need for regulation, he understands the need for regulatory oversight of the securities markets.”
