DStv Channel 403 Friday, 20 December 2024

Bitcoin hits $100,000 for first time

NEW YORK - Bitcoin broke $100,000 for the first time on Thursday as traders cheered Donald Trump's decision to pick a crypto fan to head the US securities regulator, reinforcing optimism the new president will push through measures to deregulate the sector.

The cryptocurrency soared through the mark to a peak of $103,800, having enjoyed a blistering rally since the November 5 election of Trump, who pledged on the campaign trail to make the United States the "bitcoin and cryptocurrency capital of the world".

The digital unit has jumped more than 50 percent since the tycoon's poll win -- and around 140 percent since the turn of the year.

However, the unit's advance stalled in recent weeks, sitting just below $100,000 as traders awaited new catalysts to buy in.

That came with news that Trump has fingered major crypto proponent Paul Atkins to take over as chair of the Securities & Exchange Commission.

Atkins, an SEC commissioner from 2002 to 2008, founded risk consultancy firm Patomak Global Partners in 2009, whose clients include companies in the banking, trading and cryptocurrency industries.

An announcement from the Trump transition team noted that Atkins had been co-chairman of the Digital Chamber of Commerce, which promotes the use of digital assets, since 2017.

"Paul is a proven leader for common sense regulations," Trump said in a statement that emphasised Atkins' commitment to "robust, innovative" capital markets.

"He also recognises that digital assets and other innovations are crucial to Making America Greater than Ever Before," Trump added.

He would replace Gary Gensler, who led a crackdown on the sector after a 2022 market rout. 

Even so, the SEC this year authorised the trading on the American market of two new financial products allowing a wider public to buy cryptocurrencies, called ETFs.

One is backed by the price of bitcoin and the other by ether, the second most popular unit by capitalisation.

"Atkins, a conservative legal eagle with a track record of critiquing the SEC's tough stance on cryptocurrency firms, is expected to steer a more crypto-friendly course," said Stephen Innes at SPI Asset Management.

"This strategic move has electrified the crypto community, fueling investor optimism about a potentially more accommodating regulatory landscape under Atkins' watch, aligning with broader Republican advocacy for a lenient approach to the flourishing digital asset market."

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