Bitcoin has reached a historic milestone, surging past $100,000 (approximately Ksh.13 million) for the first time. This unprecedented rise is fueled by the election of Donald Trump as President of the United States, coupled with expectations of a favorable regulatory environment for cryptocurrencies under his administration.
As of Thursday, Bitcoin was trading at $100,027, up 2.2% from the previous session and climbing to an intraday high of $100,277. The cryptocurrency has more than doubled in value this year, with a 45% increase in the four weeks since Trump’s decisive electoral victory.
A Paradigm Shift in Cryptocurrency
“We’re witnessing a paradigm shift,” said Mike Novogratz, CEO of Galaxy Digital. “After four years of political purgatory, bitcoin and the entire digital asset ecosystem are on the brink of entering the financial mainstream.”
Novogratz credits this surge to growing institutional adoption, advancements in tokenization and payment systems, and a clearer regulatory framework. These factors have positioned Bitcoin, more than 16 years after its creation, on the cusp of mainstream acceptance.
Justin D’Anethan, a Hong Kong-based crypto analyst, echoed this sentiment, calling Bitcoin’s milestone a “testament to shifting tides in finance, technology, and geopolitics.”
Trump’s Crypto Agenda
During his campaign, Trump promised to make the U.S. the “crypto capital of the planet,” signaling a dramatic pivot from the previous administration’s cautious approach. His administration plans to overhaul U.S. crypto policy, with pro-crypto figures like Paul Atkins, a former SEC commissioner and advocate for digital assets, nominated to lead the Securities and Exchange Commission (SEC).
The crypto industry anticipates an end to stringent scrutiny under outgoing SEC Chair Gary Gensler. Gensler, who will step down in January, had blocked Bitcoin exchange-traded funds (ETFs) for years, citing investor protection concerns. However, the recent approval of U.S.-listed Bitcoin ETFs has driven significant institutional interest, with over $4 billion flowing into these funds since Trump’s election.
Institutional and Industry Momentum
The optimism extends beyond policy shifts. Major crypto firms, including Ripple, Kraken, and Circle, are vying for influence on Trump’s proposed crypto advisory council. Trump’s personal ventures in the crypto space, such as the launch of his crypto business World Liberty Financial, have further bolstered market confidence.
Additionally, Trump Media and Technology Group, which operates Truth Social, is reportedly negotiating to acquire crypto trading firm Bakkt. This move aligns with Trump’s broader strategy to integrate digital assets into mainstream financial systems.
Elon Musk, a close Trump ally and vocal cryptocurrency supporter, adds another layer of influence. Musk’s enthusiasm for digital assets continues to inspire both retail and institutional investors.
Challenges and Criticism
Despite its remarkable rally, Bitcoin faces lingering skepticism. Critics highlight the industry’s past scandals, such as the collapse of FTX and the jailing of its founder, Sam Bankman-Fried. Concerns over the cryptocurrency’s massive energy consumption and crypto-related crime also persist.
Market analysts are closely monitoring Bitcoin’s trajectory. Steven McClurg, founder of Canary Capital, predicts further price increases, expecting Bitcoin to hit $120,000 by Christmas. However, he cautioned about potential profit-taking by investors in the near term, which could momentarily stabilize or slightly dip prices.
A Milestone in Financial Evolution
Bitcoin’s surge past $100,000 represents more than a milestone; it signifies the growing integration of digital assets into global financial systems. With Trump’s crypto-friendly administration set to take office, the cryptocurrency market is poised for a transformative era, blending technological innovation with mainstream financial acceptance.
As the year closes, all eyes will remain on Bitcoin’s next moves, setting the stage for an exciting new chapter in the cryptocurrency revolution.
