King of crypto: Bitcoin races past $100,000, these 5 factors pushed it to a historic high

Bitcoin surges past $100,000 for the first time. Donald Trump win and decisions to political drama in South Korea, here are the big factors which helped the oldest and the largest traded cryptocurrency to create a record

Bitcoin storms above $100,000. Source: Reuters.

After a bumpy ride, bitcoin finally surged past $100,000 for the first time on Thursday. After breaking the key level, the oldest and the largest cryptocurrency continued to soar higher and hit a peak of $103,800. The journey to the historic event started following Donald Trump’s resounding victory in the US election after which the rally extended as investors continued to bet on greater political and regulatory support from the US president-elect.

According to a report by AFP, in the past four weeks (since Trump’s triumph in US polls), bitcoin jumped more than 50 per cent and around 140 per cent since the turn of the year.

The remarkable rise after the US President election result on November 6 comes as sentiments and mood of traders and investors improved soon after Trump’s win. The US-President elect has positioned himself as a champion of digital assets, vowing to make America the “crypto capital of the planet” and also even proposing a national stockpile of bitcoin.

From $16,000 to $100,000

Bitcoin crashed to $16,000 following the collapse of FTX in late 2022 which spurred a crisis in the market. However, surpassing $100,000 in just two years is seen as a dramatic change in the fortune of the cryptocurrency and the sector at large.

Also, binance, which is the world’s biggest crypto exchange, was fined $4.3b billion last year for failing to prevent money laundering, while FTX boss Sam Bankman-Fried was jailed for 25 years in March for defrauding customers.

5 factors that pushed bitcoin beyond $100,000-mark

1 - Trump nominating Paul Atkins

In the recent couple of weeks, bitcoin reached very close to $100,000 but fell back to trade in mid-$90,000, even going as low as $92,000 on November 27. The cryptocurrency has now finally burst through the historic level after Trump nominated major crypto proponent Paul Atkins to take over as chair of the Securities and Exchange Commission (SEC).

Atkins is founder of risk consultancy firm Patomak Global Partners, whose clients include companies in the banking, trading and cryptocurrency industries.

The transition team of Trump has also noted that Atkins had co-chaired the Digital Chamber of Commerce, which promotes the use of digital assets, since 2017.

Nominating him, Trump said Atkins “recognises that digital assets and other innovations are crucial to Making America Greater than Ever Before,” Trump said.

The US President-elect has also nominated several other crypto enthusiasts to top roles, including Howard Lutnick to run the commerce department and Elon Musk to co-head a cost-saving effort dubbed the “department of government efficiency”.

2 - Trump’s personal involvement in crypto sector

Investment in bitcoin got further fillip after reports of Trump’s social media company - Trump Media and Technology Group, which operates Truth Social - bein in advanced talks to buy crypto trading firm Bakkt.

A report by The Financial Times last week, cited two people with knowledge of the talks, as saying that Trump Media and Technology Group is close to an all-stock acquisition of Bakkt.

Also, Trump’s personal involvement in the sector has caught a lot of attention after the recent launch of his crypto venture, World Liberty Financial.

3 - Political drama in South Korea

Bitcoin rally is also attributed to political drama in South Korea as traders keep track of events in the Asian nation after President Yoon Suk Yeol’s surprise declaration of martial law which was lifted within six hours after parliamentarians voted against it.

The opposition in South Korea has been demanding his resignation and has pushed for his impeachment, while the defence minister has stepped down over the crisis.

4 - Pro-crypto lawmakers into Congress

Trump’s victory has also brought pro-crypto lawmakers into Congress, supporting his vision of making the US a global hub for cryptocurrencies.

5 - China, Brazil, Russia’s growing interest in bitcoin 

After the US embracing pro-crypto policies, other countries are also moving favourably. Recently, China has lifted restrictions on personal crypto ownership.

Brazil and Russia are also considering bitcoin for reserves, signaling its growing global economic role.