Cryptocurrency is experiencing a historic moment. A few weeks after Donald Trump's victory over his rival, Democrat Kamala Harris, the price of Bitcoin finally crossed the $100,000 threshold. In less than a month, BTC went from $67,470 to just over $100,000.
At the time of publication of this article, BTC has reached $103,000. As Josh Gilbert, a market analyst for eToro, explains, “Bitcoin hitting six figures is no small feat and is a testament to the global adoption of the asset over the past few years.”
Many speculators, traders, and market observers attribute the explosion in Bitcoin’s value to the Republican’s many campaign promises. This year, Donald Trump has repeatedly promised to relax the regulations that govern the cryptocurrency sector. Following in the footsteps of several Republican senators, he has also promised to create a national Bitcoin reserve. This is the first time that Bitcoin has made a place in the American presidential debate, and more broadly, in the public debate.
Trump's latest announcement boosts Bitcoin
A few hours before the record, Donald Trump announced that he planned to appoint a new director of the Securities and Exchange Commission (SEC), the American stock market regulator, to replace the controversial Gary Gensler, who is fiercely opposed to cryptocurrencies. To replace Gensler, Trump is counting on Republican lawyer Paul Atkins.
A former SEC commissioner during the George W. Bush era, Atkins has always been open to cryptocurrencies. He is also an advisor to the Digital Chamber, an organization promoting blockchain. Last year, Atkins had also strongly criticized Gary Gensler's SEC strategy. This announcement obviously boosted the enthusiasm of investors, who are increasingly convinced that Donald Trump will lead crypto to the top.
As always, the huge success of Bitcoin has stimulated the entire crypto market. Many altcoins have also seen their price increase while Bitcoin went to $100,000. This is the case for Solana, which has also broken its historical record before Bitcoin, driven by the full house of memecoins. Let us also mention the strong comeback of XRP, Ripple's crypto, after years of stagnation.
The reasons behind Bitcoin's record
In fact, Bitcoin's price is not only benefiting from Donald Trump's victory in the elections. Bitcoin showed signs of recovery months before Donald Trump posed as the fervent defender of cryptocurrencies. For informed market observers, the first steps of its comeback date back to April.
Indeed, the last halving, the fourth major update of the cryptocurrency, was deployed on the blockchain in April 2024. This operation halved the rewards paid to cryptocurrency miners. Above all, the process reduced the number of bitcoins produced and mechanically boosted its value. A similar update is also at the origin of the increase in all previous bull markets. In general, the market starts to rise again a few months after the halving. This is already what happened in 2020.
At the same time, the price of Bitcoin benefited from its arrival on Wall Street. After months of hesitation, the stock market regulator approved the first index funds backed by Bitcoin, the ETFs (Exchange Traded Funds). This historic decision was accompanied by an influx of capital from institutional investors. These funds therefore helped to boost demand for Bitcoin and stimulate the price. These factors are responsible for Bitcoin's stratospheric rise in 2024 and its long-awaited passage above $100,000.
Towards $200,000 and beyond?
Of course, investors had been waiting a very long time for the Bitcoin price to pass $100,000. Already in 2021, during the height of the last bull market, a narrative indicating that the price would pass $100,000 before the end of the year had gained the support of investors. In the end, it would take three more years to pass the milestone.
Ecosystem players believe that Bitcoin is not going to stop there. Some leading figures in crypto are counting on Bitcoin above $200,000 in the coming months. Others are looking further ahead and are talking about a BTC worth more than a million dollars in the near future. For Josh Gilbert, "this rise does not seem to be over yet for the year, thanks to the powerful momentum that is currently driving this bull market":
Same observation for analyst Simon Peters. According to him, "the bull market is still in its early stages". In fact, "the peak of the bull market should occur at the end of 2025 or the beginning of 2026".
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