Bitcoin reached a record high of $100,000 on Wednesday following President-elect Donald Trump’s announcement of his administration’s top choices.
His selection of Paul Atkins to head the Securities and Exchange Commission (SEC) is the most significant development.
Atkins, a fervent advocate for cryptocurrencies, was a former commissioner of the SEC. Compared to Gary Gensler, the current chair of the SEC, who has been more strict with the cryptocurrency business, his nomination is anticipated to bring a more lenient attitude to regulation. Gensler will resign on Inauguration Day under the Biden government.
Trump’s actions during the election demonstrate his growing support for cryptocurrencies. By giving over $131 million to pro-crypto politicians running for Congress, the crypto community significantly aided Trump and the Republican Party.
After his campaign began collecting bitcoin donations in May, Trump was able to raise millions of dollars. The crypto community is anticipating a change toward more crypto-friendly regulations with these new appointments, particularly in light of the stricter stance taken by the Biden administration.
Trump has chosen Howard Lutnick, CEO of Cantor Fitzgerald, a prominent advocate of Tether, one of the biggest cryptocurrencies in the world, in addition to Atkins.
According to reports, Trump is also thinking of establishing a new White House job specifically focused on crypto policy, which would demonstrate his dedication to the sector.
Even with Trump’s backing, a lot of financial authorities are still cautious about cryptocurrencies. Bitcoin has been referred to as a “speculative asset” by Federal Reserve Chair Jerome Powell, who has compared it to gold rather than a form of currency.
Powell has stated that Bitcoin is a rival to gold rather than the dollar. He also mentioned that his job does not permit him to possess cryptocurrency.
The enthusiasm around Trump’s election triumph is a major factor driving the price increase of bitcoin. When it was predicted that Trump would win on November 6, the price of Bitcoin jumped $6,000 in a single day, reaching $74,000. Within a week, Bitcoin had risen to $90,000.
This year, the cryptocurrency has increased 130%, far surpassing the S&P 500’s 28% gain.
Trump has changed his mind in recent months after first dismissing Bitcoin as “not money” and “highly volatile.” In an attempt to win over younger voters—who often possess more cryptocurrency—he started to embrace it.
Speaking at the biggest cryptocurrency convention in Nashville, Trump proposed establishing a “strategic national bitcoin stockpile” and retaining Bitcoin that has been confiscated from criminals instead of selling it at auction, as is now the case.
Trump made waves in September when he used Bitcoin to purchase hamburgers at a Manhattan club frequented by cryptocurrency enthusiasts. He also started his own cryptocurrency company, World Liberty Financial.
According to reports, Trump’s media firm, which also controls Truth Social, is in negotiations to buy the cryptocurrency trading site Bakkt.
Along with his important selections, Trump’s increasing support for cryptocurrencies portends a significant change in U.S. policy.
