Bitcoin prices topped $100,000 mark for the first time ever on December 5, fuelled by President-elect Donald Trump's choice of a pro-crypto chair for the US Securities and Exchange Commission (SEC), as well as Russian President Putin's comment hinting at embracing the digital asset, taking the market value of the digital assets near $2 trillion.
Pro-Crypto SEC Pick
Trump has picked Paul Atkins to succeed outgoing SEC Chair Gary Gensler, who had implemented strict regulations on digital assets. Donald Trump has promised to appoint regulators more agreeable to the digital asset industry, and has plans for a strategic stockpile of Bitcoin. The recently concluded US election also saw candidates supportive of cryptocurrencies emerge as lawmakers.
“Paul is a proven leader for common sense regulations. He believes in the promise of robust, innovative capital markets that are responsive to the needs of Investors, & that provide capital to make our Economy the best in the World,” Trump said in the statement on his Truth Social account on Wednesday.
Atkins has been a strong supporter of digital assets, and his selection as the chair of the SEC has been found favour among financial market industry participants. Robinhood Inc's legal chief Dan Gallagher said Atkins is “the perfect pick for SEC chair.”
During his term as an SEC commissioner, Atkins spoke out against penalties on companies, saying they ultimately hurt shareholders. He has also criticized parts of the Dodd-Frank legislation that was enacted after the 2008 financial crisis.
Putin Backs Cryptos
Some Bitcoin participants also attributed the comments from Russian President Vladimir Putin to the rally. Putin had said at an economic forum in Moscow that nobody can prohibit the use of Bitcoin and other virtual currencies.
ETF Money Soaring
US Exchange-Traded Funds investing in Bitcoins have seen a net inflow of about $32 billion this year, with over $8 billion coming in since Trump's election victory, data from Bloomberg shows.
The Rise of Crypto
The market capitalization of the crypto asset is now just shy of $2 trillion level. To put this in context, Nvidia and Apple's market capitalisation is just over $3.5 trillion and $3.6 trillion respectively.
Bitcoin Flirted With $100,000 for Past Two Weeks. Chart source: Bloomberg News
The market capitalization of all the gold in the world is roughly $17.7 trillion.
The enthusiasm around bitcoin is expected to continue, especially in anticipation of supportive policies from the incoming Trump administration, which is encouraging a favourable environment for the digital asset.
Read More: Web3, crypto regulatory proposals take centre stage at India Blockchain Week
Trump has promised to undo a clampdown on digital assets, and has even backed a strategic national Bitcoin reserve.
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