Representative image.
Credit: Reuters File Photo
By Sunil Jagtiani
US President-elect Donald Trump’s pick of a crypto proponent to be the next head of the US securities regulator lifted Bitcoin to a record $100,000 as traders warmed to the prospect of relaxed regulations.
The digital asset rose more than 3 per cent to $101,555 in Asian trading on Thursday. The crypto market overall has jumped by roughly $1.4 trillion since Trump’s US election victory on November 5 on a platform that includes a tight embrace of crypto.
Trump selected Paul Atkins to replace outgoing Securities & Exchange Commission Chair Gary Gensler, who cracked down on digital assets after a 2022 market rout exposed fraudulent practices and sparked costly blowups.
“This is a momentum rally,” said Jason Titman, chief executive of crypto brokerage Swyftx. “Global spot volumes are above mid-pandemic levels and the nomination of Paul Atkins as SEC chair just added to the carnival atmosphere.”
Speculators also digested comments from Russian President Vladimir Putin, who said at an economic forum in Moscow that nobody can prohibit the use of Bitcoin and other virtual currencies.
Bitcoin on Nov. 22 was less than $300 from achieving $100,000 for the first time but fell back while remaining in sight of the landmark level. Crypto’s adherents view the six-figure number as a validation of controversial claims that Bitcoin is a modern-day store of value and hedge for inflation risk.
Meitu’s disposals
Critics highlight the volatility of Bitcoin, whose 140 per cent advance this year raises questions about how much further the rally can go. Meitu Inc., a provider of tools to create digital content, just sold all its Bitcoin and Ether holdings for about $180 million, citing “a good opportunity to realize a sizable gain.”
US exchange-traded funds for Bitcoin have attracted a net inflow of about $32 billion this year, including over $8 billion since Trump became president-elect, data compiled by Bloomberg show. The combined trading volume for digital assets and related derivatives across centralized exchanges climbed to a record of more than $10 trillion last month, according to CCData.
Trump has vowed to undo a Biden administration clampdown on digital assets, install friendly regulators and turn the US into the global home of crypto. The Republican even backed the idea of a strategic national Bitcoin reserve, though there are doubts over whether the latter objective is feasible.