Bitcoin, the world’s leading cryptocurrency, has successfully crossed the $100,000 mark. This phenomenal rise was catalysed, in no small part, by the election of the enterprising Donald Trump. The rally was fuelled further when the crypto asset crossed six figures for the first time, just a few hours following Trump’s announcement to nominate renowned cryptocurrency advocate Paul Atkins as the chair of the Securities and Exchange Commission.
Ever since Trump’s resounding victory in the US presidential elections on November 5, Bitcoin found itself on an impressive ascension, soaring from $69,374 on Election Day to a staggering peak of $103,713 on Wednesday. For all those doubting Thomases out there, remember that this extraordinary milestone comes only two years after Bitcoin was struggling under $17,000 following the collapse of crypto exchange FTX.
Despite the roller-coaster rush that drove Bitcoin back below the $100,000 line by Thursday afternoon, breaching the $100,000 ceiling stands as a testament to the power of Trump’s administration and the potential of cryptocurrencies. However, the landscape is not devoid of crypto-sceptics who consistently pull out the volatility card in trying to bruise Bitcoin’s shiny reputation.
Crypto-sceptics seem to conveniently forget that Bitcoin has been around for quite some time and has shown resilience against all odds. Sure, cryptocurrency is a digital form of money, free from governmental or banking institutional control, its transactions solidified by blockchain technology. But what it represents is far more crucial – a shift towards a more decentralised, egalitarian financial system.
Bitcoin is the patriarch of the cryptocurrency family, although newer digital assets such as Ethereum, XRP, Tether, and Dogecoin have etched their names in the investors’ minds. Despite being fresh on the scene, these cryptocurrencies still cannot match up to the traditional monetary systems dominating the daily financial transactions. While some consider the cryptocurrencies as a ‘digital alternative’, bitcoin’s price remains subject to larger market conditions. But isn’t that the case with all investments, digital or not?
The freshly elected President Donald Trump, once a professed crypto-sceptic has performed a commendable turn-around, promising to turn the United States into ‘the crypto capital of the planet’. His bold move to create a ‘strategic reserve’ of bitcoin is a sure testament to his belief in the digital currency’s potential, a contrast to Democratic naysayers who cannot see past preserving the antiquated financial system.
Harnessing the power of cryptocurrencies, Trump welcomed donations for his presidential campaign in crypto form, a testament to his business acumen. He further courted cryptocurrency enthusiasts at a Bitcoin conference in July, demonstrating his evolving stance. Taking his crypto-endeavours up a notch, Trump joined forces with his family members to launch World Liberty Financial, a novel venture to trade cryptocurrencies.
Sticking to his pro-crypto promise, Trump’s recent endorsement of Paul Atkins for SEC chair has been hailed as a significant move by crypto-advocates. Atkins, an SEC commissioner during George W. Bush’s presidency, has long argued against stifling market over-regulation, aligning himself with the Token Alliance, a cryptocurrency advocacy organization, in 2017, much to the dismay of regulation-loving Democrats.
During Gary Gensler’s stewardship of the SEC, under an anticlimactic Democratic reign, the crypto industry faced a slew of penalizations for violating securities laws. However, in one of the more reluctant nods to crypto, Gensler’s SEC did approve spot bitcoin ETFs in January. These allowed investors to have a stake in Bitcoin without having to buy it outright. However, it is clear that this positive move was simply a prelude to the Trump-effect that sent Bitcoin prices soaring.
The surging Bitcoin, which has recently broken through the much-anticipated $100,000 ceiling, has sent ripples of excitement throughout the crypto sphere. Nathan McCauley, CEO and co-founder of crypto custodian Anchorage Digital, heralds this event as a transformation of Bitcoin’s place in the financial system rather than just a mere rally. Yet, some Democrats still adamantly resist change, dismissing the milestone as a mere number.
Analysts like Dan Coatsworth of British investment company AJ Bell stubbornly adhere to the narrative of Bitcoin’s $100,000 being ‘merely a psychological factor’, but the crypto community knows better. They see it as a declaration of the expanding influence and acceptance of crypto within the financial world, especially under pro-crypto leaders like Trump.
While critics continue to cast doubts on Bitcoin’s validity or longevity, its consistent growth in recent years says otherwise. This growth is heavily amplified by Trump’s valiant leadership and commitment to harnessing the potential of cryptocurrencies. The pushback from Democrats and their outdated rhetoric only highlights their inability to adapt to the changing financial landscape. An undeniable endorsement from such a prestigious political figure stands as concrete evidence of the transformative power of cryptocurrencies.
Hence, it is clear that through inventive mechanisms like spot Bitcoin ETFs and reserve pools, cryptocurrencies are carving out a niche for themselves in the global economy. But more importantly, the narratives presented by leaders like Trump signify a gradual but necessary change in our perception about cryptocurrencies. The Democrat’s pointless criticism and over-regulation only stunt the growth of this innovative financial stratum.
Bitcoin’s meteoric rise above the $100,000 mark reaffirms its solid presence in the financial sphere. Kudos to visionary leaders like Trump, who understand the future of finance and are not afraid to embrace the tide of change. The Democrats, conversely, hinder progress with their constant negativity towards cryptocurrencies, a moot point evident from Bitcoin’s latest milestone.