Bitcoin investors celebrated a historic milestone late Wednesday as the cryptocurrency surged past $100,000 for the first time, marking a major achievement in its evolution. However, by Thursday afternoon, profit-taking caused bitcoin to retreat slightly, trading at $99,140, according to Coin Metrics. The cryptocurrency hit an all-time high of $103,844.05 before the pullback.
The rise came amid optimism in the crypto industry following President-elect Donald Trump’s announcement of plans to nominate Paul Atkins as the new chair of the Securities and Exchange Commission (SEC). The move is expected to reshape regulatory policies that many in the crypto space have criticized as overly restrictive.
President-elect Trump addressed bitcoin’s milestone in a Truth Social post on Thursday, expressing his support for the cryptocurrency community. “You’re welcome,” Trump wrote, referring to his administration’s pro-crypto policies, and reiterated his commitment to “making America great again” by supporting innovative technologies like bitcoin.
Trump’s campaign promises to replace outgoing SEC Chair Gary Gensler, whose stringent enforcement actions have often clashed with the crypto industry, have fueled optimism among investors.
For long-time bitcoin holders, often referred to as “HODLers,” the milestone is a testament to their patience through years of market volatility and skepticism from traditional financial institutions.
Bitcoin’s origins lie in its anti-establishment ethos, born during the 2008 financial crisis. Its pseudonymous creator, Satoshi Nakamoto, envisioned a peer-to-peer digital currency independent of traditional financial institutions. However, recent years have seen increasing adoption by institutional investors, which has significantly influenced its growth.
Major financial players like BlackRock, Fidelity, and Invesco launched spot bitcoin exchange-traded funds (ETFs) earlier this year, offering institutional investors a safer way to access the market. These ETFs are often referred to as bitcoin’s “IPO moment,” and their success has driven massive inflows into the cryptocurrency market.
Rick Wurster, incoming CEO of Charles Schwab, hinted in November that the firm plans to enter spot crypto trading, contingent on expected regulatory changes under the Trump administration.
Even Federal Reserve Chair Jerome Powell weighed in on bitcoin’s rise during the DealBook conference on Wednesday. Powell compared bitcoin to gold, stating, “It’s just like gold, only it’s virtual, it’s digital.” However, he clarified that bitcoin is not widely used as a payment method or store of value, emphasizing its role as a competitor to gold rather than traditional currencies.
“This milestone represents a paradigm shift,” said Mike Novogratz, CEO of Galaxy Digital. “Bitcoin and the broader digital asset ecosystem are on the verge of entering the financial mainstream after years of skepticism.”
Bitcoin’s path to $100,000 had been widely anticipated following the U.S. presidential election, with optimistic investors driving the cryptocurrency’s price upward. Expectations are high for Trump’s administration to deliver on promises such as establishing a national bitcoin reserve, eliminating taxes on crypto transactions, and facilitating public equity market access for crypto firms.
Mike Novogratz remains optimistic about bitcoin’s long-term potential but advises caution. “It won’t be a straight line up. Investors should consider taking profits along the way,” he told CNBC.
Despite Thursday’s slight pullback, bitcoin remains up more than 133% in 2024 and has risen 42% since the presidential election.
