Bitcoin storms US$100,000 milestone as Trump’s SEC pick fuels crypto euphoria
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Bitcoin has more than doubled in 2024 and is up more than 50 per cent since Trump’s election victory on Nov 5.
PHOTO: REUTERS
NEW YORK - Bitcoin catapulted above US$100,000 for the first time on Dec 5, a milestone hailed even by sceptics as a coming-of-age for cryptocurrencies as investors bet on a friendly Trump administration to cement crypto’s place in financial markets.
It has more than doubled in value in 2024 and is up more than 50 per cent in the four weeks since Donald Trump’s sweeping victory in the US presidential election on Nov 5.
Once it broke US$100,000 in early Asian trading on Dec 5, it was soon above US$103,000 on its way to an all-time high of US$103,619, a surge of about 6 per cent on the day. It was last fetching US$101,933.
“Bitcoin crossing US$100,000 is more than just a milestone; it’s a testament to shifting tides in finance, technology and geopolitics,” said Hong Kong-based independent crypto analyst Justin D’Anethan. “The figure not that long ago dismissed as fantasy, stands as a reality.”
The total value of the cryptocurrency market has almost doubled over the year so far to hit a record just shy of US$3.8 trillion (S$5.1 trillion), according to data provider CoinGecko.
By comparison, Apple alone is worth about US$3.7 trillion.
Trump embraced digital assets during his campaign, promising to make the US the “crypto capital of the planet” and to accumulate a national stockpile of Bitcoin.
On Dec 4, he selected Mr Paul Atkins
Mr Atkins, a former SEC commissioner, has been involved in crypto policy as co-chairman of the Token Alliance, which works to “develop best practices for digital asset issuances and trading platforms”, and the Chamber of Digital Commerce.
A slew of crypto companies including Ripple, Kraken and Circle are also jostling for a seat on Trump’s promised crypto advisory council.
Bitcoin has proven a survivor through precipitous downturns.
Its move into six-figure territory is a remarkable comeback from a dip below US$16,000 in 2022 when the industry was reeling from the collapse of the FTX exchange. Founder Sam Bankman-Fried was subsequently jailed.
Analysts say the growing embrace of Bitcoin by big investors in 2024 has been a driving force behind the record-breaking rally.
US-listed Bitcoin exchange-traded funds (ETFs) were approved in January and have been a conduit for large-scale buying, with more than US$4 billion streaming into these funds since the US election.
“We’re witnessing a paradigm shift. After four years of political purgatory, Bitcoin and the entire digital asset ecosystem are on the brink of entering the financial mainstream,” said Mr Mike Novogratz, founder and chief executive of US crypto firm Galaxy Digital.
“This momentum is fuelled by institutional adoption, advancements in tokenisation and payments, and a clearer regulatory path.”
Crypto-related stocks have soared along with the Bitcoin price, with shares in Bitcoin miner Mara Holdings and exchange operator Coinbase each up around 65 per cent in November.
Software firm Microstrategy, which has repeatedly raised funds to buy Bitcoin and held an aggregate of about 402,100 bitcoins as at Dec 1, has gained 542 per cent in 2024.
Trump himself unveiled a new crypto business, World Liberty Financial, in September, although details have been scarce and billionaire Elon Musk, a major Trump ally, is also a proponent of cryptocurrencies.
Who can prohibit it
The cryptocurrency industry has been criticised for its massive energy usage, while crypto crime remains a concern, and the underlying technology is yet to deliver a major revolution in the way money moves around the globe.
Still, as Russian President Vladimir Putin pointed out at an investment conference on Dec 4: “Who can prohibit it? No one.” And its longevity is perhaps testament to a degree of resilience.
“As time goes by, it’s proving itself as part of the financial landscape,” said Mr Shane Oliver, chief economist and head of investment strategy at AMP in Sydney.
“I find it very hard to value it... it’s anyone’s guess. But it does have a momentum aspect to it, and at the moment the momentum is up.”
Market participants are keeping a close eye on what happens now that Bitcoin has broken above US$100,000, with investors and speculators possibly looking to pocket some of their recent gains.
“But once we flush out those sell orders, this could go higher still, and very rapidly,” said Mr Steven McClurg, founder of Canary Capital, a digital assets investment firm. He expects Bitcoin’s price to hit US$120,000 by Christmas. REUTERS, BLOOMBERG
