Paul Atkins’ expected appointment as SEC chair has sparked renewed optimism, with market participants predicting a “crypto renaissance” under the incoming administration
Bitcoin surpassed the long-anticipated $100K mark late Wednesday after President-elect Donald Trump’s decision to nominate Paul Atkins as SEC chair.
The market’s top crypto coin reached an all-time high of $103,900.47 and is up more than 140% this year, thanks to political and investor support.
Atkins, known for his market-friendly stance, is expected to replace the longstanding Gary Gensler on January 20, 2025, in a move widely seen as a game-changer for the crypto industry.
Mike Novogratz, CEO of Galaxy Digital, described the move as “a paradigm shift”.
“A pro-crypto administration will accelerate Bitcoin’s mainstream adoption like never before,” he said in a CNBC interview.
Bitcoin skeptics like Federal Reserve Chair Jerome Powell are also beginning to acknowledge its growing relevance in the world economy. Speaking at the DealBook conference on Wednesday, Powell compared Bitcoin to gold, stating “it’s virtual, it’s digital”, while emphasizing its role as a competitor to gold rather than a substitute for the U.S. dollar.
Institutional momentum fuels Bitcoin rally
Industry heavyweights like BlackRock, Fidelity, and Invesco launched the first spot Bitcoin exchange-traded funds (ETFs) earlier this year, marking what some have called Bitcoin’s “IPO moment”. The growing popularity of these ETFs has been a significant driver of cryptocurrency’s rise in recent times.
Rick Wurster, incoming CEO of Charles Schwab, announced in November that the firm is preparing to enter the crypto market for the first time. “Bitcoin’s appeal as a strategic asset is undeniable,” Wurster said.
As institutional adoption expands, the scale of Bitcoin ETFs is nearing a historic milestone. According to Cointelegraph, U.S. spot-listed ETFs now hold 1.083 million Bitcoin, just 13,000 shy of flipping the total holdings of Bitcoin’s anonymous creator, Satoshi Nakamoto.
🚨 BREAKING: US Spot Listed ETFs only 13K #Bitcoin away from flipping Satoshi’s holdings, with 1.083M $BTC vs 1.096M $BTC. pic.twitter.com/IWXiKB4Ncj
— Cointelegraph (@Cointelegraph) December 3, 2024
Meanwhile, MicroStrategy announced on Dec. 2 a new Bitcoin purchase of 15,400 BTC for $1.5 billion. This has bolstered its status as the largest corporate Bitcoin holder and highlights institutional investment’s growing role in the current Bitcoin rally.
A historic moment for Bitcoin
For longtime Bitcoin investors, crossing the $100,000 threshold is a moment of vindication. Many have endured years of extreme volatility, holding on during periods when government and institutional skepticism dominated.
Launched during the 2008 financial crisis, Bitcoin was envisioned as a “peer-to-peer version of electronic cash”, as described in the original Bitcoin Whitepaper by its pseudonymous creator, Satoshi Nakamoto. Its original purpose was to bypass traditional financial intermediaries, a vision now embraced by institutional investors worldwide.
The pro-crypto policies expected under the Trump administration could solidify the U.S. as a global leader in digital assets. Proposals such as establishing a national Bitcoin reserve, eliminating taxes on crypto transactions, and encouraging more IPOs in the space have sparked optimism among market participants.
“Over the long term, I’m bullish,” Galaxy Digital’s Novogratz added. “It won’t be a straight line up, and investors should always consider taking gains off the table.
“But, with a pro-crypto administration about to take charge in the U.S., it’ll be hard for the rest of the world not to take notice.”
