Bitcoin tops $100,000 for the first time. Here’s what’s driving gains.
After a two-week flirtation with the six-figure mark, bitcoin has surged past $100,000 for the first time on the thinking that the incoming administration will be friendlier toward — and relax regulations on — cryptocurrencies.
The milestone came late Wednesday after President-elect Donald Trump nominated Paul Atkins to head the the Securities and Exchange Commission. Atkins runs Patomak Global Partners, a financial services advisory group that works with crypto industry clients. Atkins is also an adviser to the Chamber of Digital Commerce, a crypto advocacy group.
The pick is a marked turn from outgoing SEC Chair Gary Gensler, who cracked down on digital assets following a 2022 market rout that unveiled fraudulent practices and resulted in expensive blowups, including the sudden collapse of crypto exchange FTX, followed by crypto lenders Genesis and Celsius.
Coinciding with Trump’s selection of a crypto backer to lead the SEC, Federal Reserve Chair Jerome Powell on Wednesday likened bitcoin to gold, telling the New York Times DealBook Summit that “people use bitcoin as a speculative asset. It’s like gold, it’s just like gold, only it’s virtual, it’s digital. People are not using it as a form of payment or a store of value,” Powell said. “It’s highly volatile. It’s not a competitor for the dollar, it’s really a competitor for gold.”
Why Bitcoin stock surged after Trump’s 2024 election win
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Formerly a skeptic, Trump is now a convert. He and his sons have started their own crypto venture, and other members of the incoming administration have previously disclosed investments in and backing for cryptocurrencies. That includes Vice President-elect J.D. Vance, Health and Human Services nominee Robert F. Kennedy Jr. and Commerce Secretary Howard Lutnick.
Trump over the summer spoke at a bitcoin conference in Nashville, where he pledged to make America “the crypto capital of the planet” once back in the White House.
Trump on Thursday took credit for bitcoin’s rise, posting on his Truth Social platform: “CONGRATULATIONS BITCOINERS!!! YOU’RE WELCOME!!! Together, we will Make America Great Again!”
The price of bitcoin has leapt 42% since the day before the presidential election on November 5, when it was running about $70,000 a coin. It jumped as high as $103,800 after breaching the $100,000 level.
Kate Gibson
Source: cbsnews.com