Galvanized by Trump, bitcoin crosses $100,000

Galvanized by Trump, bitcoin crosses $100,000
Galvanized by Trump, bitcoin crosses $100,000

Bitcoin crossed the symbolic mark of $100,000 for the first time on Thursday, an unprecedented peak for the star of digital currencies, whose value has skyrocketed since the election a month ago of Donald Trump, a major promoter of the sector.

Around 10:05 a.m. GMT, the largest cryptocurrency by capitalization was trading at $102,886.06, after climbing overnight to a new record of $103,800.45 following the announcement by the president-elect of his intention to place a close of the sector at the head of the American financial markets policeman, the SEC.

Such a level, far from being imagined 16 years ago when the currency was created, gives a little more credibility to the field of digital assets, sometimes subject to controversy, which sees the return of the Republican leader to the presidency as a boon. White House, especially with Elon Musk at his side.

Because after describing cryptocurrencies as a scam during his first term, Donald Trump changed his tune during his campaign – partly financed by the sector – proclaiming his intention to make the United States “the world capital of bitcoin and cryptocurrencies.

Consequence: bitcoin, which hovered around $69,000 on November 5, the day of the election, has swelled by around 48% since.

Ministry of Crypto

Its price even soared by more than 8% during the night from Wednesday to Thursday after Donald Trump’s announcement that he planned to appoint Republican lawyer Paul Atkins to head the American financial markets regulatory authority. (DRY).

His name “electrified the crypto community, reinforcing optimism about a more accommodating regulatory landscape” and “a lenient approach to this booming market,” observes Stephen Innes of SPI Asset Management.

Mr. Atkins publicly criticized SEC officials last year, saying they should have been “more accommodating” with “crypto” companies and accusing them of luring entrepreneurs away from the American market.

“Paul recognizes that digital assets are crucial to making America greater than it has ever been,” commented Donald Trump on his Truth Social platform.

Paul Atkins will succeed Gary Gensler, whose repressive approach to digital currencies raised eyebrows in the sector. His early resignation in November had already caused the price of bitcoin to jump.

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The surge in recent weeks has also been fueled by the possibility of the creation by Donald Trump of a ministry responsible for cryptocurrencies or the intention attributed to him to create a strategic reserve of bitcoins in the United States, mainly thanks to tokens seized by the courts, which would further legitimize the currency.

“Could he be the president who allows cryptocurrencies to become widespread, will Americans be able to use them to pay their taxes? There is a greater chance that this will happen,” recently noted Kathleen Brooks, expert for the broker XTB.

Salvador and Central Africa

Many cryptocurrencies and companies in the sector saw their prices explode after the American election, like the Bitcoin service provider MicroStrategy and the exchange platform Coinbase.

Dogecoin, a crypto initially created as a joke, and which Elon Musk became infatuated with from 2019, has also ridden the wave.

Bitcoin was born in 2008 from a libertarian dream: to escape the control of financial institutions by relying on a technology (“blockchain”) which makes it possible to record transactions in a decentralized and unfalsifiable manner thanks to a network of computers in the whole world.

Over the years, bitcoin, like other cryptocurrencies, has been involved in several financial scandals, the preferred currency of hackers or to monetize illicit activities.

Today he is in search of respectability. In 2021, El Salvador was the first country to adopt it as legal tender, without convincing the population, followed by the Central African Republic. Some merchants accept it as a means of payment, as Elon Musk did for his Tesla cars before turning around.

In the United States, two new investment products (ETFs), one tracking the performance of bitcoin, the other that of ether, the second main cryptocurrency, have attracted tens of billions this year, contributing to the soaring course.

With AFP

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