On Thursday, December 5th, Bitcoin surpassed $100,000 for the first time. Traders welcomed President Donald Trump’s decision to choose a crypto enthusiast to lead the U.S. securities regulator, increasing optimism that the new president will push for measures to deregulate the sector.
Cryptocurrencies have seen a ferocious rally since the November 5 election of Trump, who promised during his campaign to make the United States the “Bitcoin and cryptocurrency capital of the world,” reaching a peak of $103,800. rose.
The digital sector has soared more than 50% since the tycoon’s poll victory and is up about 140% since the beginning of the year. However, the unit’s gains stalled in recent weeks as traders awaited new buying triggers, leaving it just below $100,000.
This was coupled with news that President Trump nominated leading crypto advocate Paul Atkins to head the Securities and Exchange Commission. Mr. Atkins, who served as SEC Commissioner from 2002 to 2008, founded Patmac Global Partners in 2009, a risk consulting firm whose clients include companies in the banking, trading and cryptocurrency industries.
Atkins has served as co-chairman of the Digital Chamber of Commerce, which promotes the use of digital assets, since 2017, according to a statement from the Trump transition team.
“Paul has a proven track record of sound regulatory leadership,” Trump said in a statement, highlighting Atkins’ commitment to “robust and innovative” capital markets. Trump added: “We also recognize that digital assets and other innovations are essential to making America greater than ever.” He replaces Gary Gensler, who led the crackdown on the sector after the 2022 market crash.
Still, this year the SEC approved two new financial products, called ETFs, to trade in the U.S. market that make cryptocurrencies available to a wide range of citizens. One is backed by the price of Bitcoin and the other by Ether, the second most popular unit of market capitalization.
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Stephen Innes of SPI Asset Management said, “Mr. Atkins is a conservative lawyer with a track record of criticizing the SEC’s harsh stance on virtual currency companies, and is expected to steer the company in a more cryptocurrency-friendly direction.” ” he said.
“This strategic move sent shockwaves through the crypto community, increasing investor optimism about the likelihood of a more flexible regulatory environment under Atkins’ watch and greater tolerance for a thriving digital asset market. This is consistent with broad Republican support for a more inclusive approach.”
President Trump’s U-turn
Although Trump had previously branded cryptocurrencies a “scam,” he changed his tune and became a major supporter of the unit during the campaign. In September, he announced that he and his sons and other entrepreneurs were launching a digital currency platform called World Liberty Financial.
He is also a close friend of business tycoon Elon Musk, who said he would lead a new U.S. government efficiency group tasked with reducing federal waste. Musk reportedly spent more than $100 million to help President Trump retake the White House and repeatedly promoted Trump’s candidacy on the X social media platform. “Amazing,” Musk wrote in response to X’s news that Bitcoin had reached the $100,000 level.
“If he increases expectations that he will deregulate the crypto industry, it becomes easy to understand why investors would flock to digital currencies and related stocks,” said Dan Coatsworth, an analyst at investment group AJ Bell. said.
Among the measures expected in this area include the creation of a Bitcoin strategic reserve in the United States, consisting primarily of tokens seized by courts, which would allow other countries to further legitimize the cryptocurrency. It may encourage you to give sex.
Summer Hassun of XS.com added that the prospect of deregulation raises “expectations that cryptocurrencies will become more deeply integrated into economic life” in the country. Cryptocurrencies have made headlines since their inception, from extreme volatility to the collapse of several industry giants, most notably the FTX exchange platform.
Bitcoin was invented in 2008 by an individual or group writing under the name Satoshi Nakamoto. This was proposed as a way to break away from mainstream financial institutions by establishing a decentralized trading platform.
Digital currencies are created, or “mined,” as rewards when powerful computers solve complex problems and verify transactions made on an anti-interference register known as a blockchain.
Bitcoin has long been criticized for being the currency of choice for making untraceable payments on the dark web, a hidden part of the internet used for criminal activity. This asset has been frequently attacked for facilitating money laundering and enabling extortion through ransomware attacks.
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