Bitcoin hits historic $100,000 mark
New York: Bitcoin surged past $100,000, marking a historic milestone in cryptocurrency trading, driven by Donald Trump’s presidential election victory and his pro-crypto stance. The digital currency has seen a dramatic rise from $69,374 on Election Day to a peak of $103,713 on Wednesday, according to CoinDesk data.
The rally gained momentum after Trump announced his intention to nominate Paul Atkins, a cryptocurrency advocate and former SEC commissioner, as the next Securities and Exchange Commission chair. Atkins, who joined the Token Alliance in 2017, has consistently argued against excessive market regulation and is expected to adopt a more industry-friendly approach compared to current chair Gary Gensler.
Trump’s evolution from crypto skeptic to advocate has played a crucial role in market sentiment. The President-elect has pledged to make the United States “the crypto capital of the planet” and establish a “strategic reserve” of bitcoin. His campaign accepted cryptocurrency donations, and he launched World Liberty Financial, a family venture focused on cryptocurrency trading.
This remarkable recovery follows bitcoin’s previous struggles, when it fell below $17,000 after FTX’s collapse two years ago. The recent surge has been supported by January’s SEC approval of spot bitcoin ETFs, allowing investors to gain exposure to bitcoin without direct ownership. These ETFs have seen record inflows since the election. However, analysts urge caution amid the enthusiasm. Adam Morgan McCarthy, a research analyst at Kaiko, advocates for a simple approach, warning investors against taking on excessive risk. The cryptocurrency’s volatility remains a concern, as evidenced by its slight retreat to just under $102,000 early Thursday.
Environmental concerns persist alongside the price surge. Recent research from the United Nations University and Earth’s Future journal revealed that bitcoin mining’s carbon footprint in 2020-2021 across 76 nations equaled the emissions from burning 84 billion pounds of coal. While industry analysts claim an increase in clean energy usage, coal still powers 45 per cent of bitcoin’s electricity demands, followed by natural gas at 21 per cent and hydropower at 16 per cent.
As Trump prepares to take office, the crypto industry anticipates regulatory changes that could enhance legitimacy while reducing oversight. This shift comes after Gensler’s tenure, which was marked by aggressive enforcement actions against companies violating securities laws.
