Bitcoin's Price Broke $100,000. What's Next?
Bitcoin (BTCUSD) traded above $100,000 for the first time ever in late trading Wednesday.
The largest cryptocurrency by market cap touched a new high of $101,419, according to data from TradingView. The most recent price surge came after President-elect Donald Trump nominated pro-crypto Paul Atkins to lead the U.S. Securities and Exchange Commission (SEC).
Bitcoin had come close to breaching $100,000 in November thanks to a post-election rally, later falling as low as $91,000 amid profit taking.
That rally in bitcoin prices had been driven largely by the expectation of more clarity around cryptocurrency regulation and a more crypto-friendly administration since Trump's electoral victory, with investors pouring money into bitcoin alongside crypto-related stocks and exchange-traded funds.
Investors have cheered news about the incoming administration setting up a cryptocurrency advisory council and, possibly, also a bitcoin strategic reserve.
The nomination of Atkins for SEC chair was seen as more good news for the crypto industry after the current leader of the agency, Gary Gensler, announced his departure from the role. Gensler was often criticized by crypto backers for the SEC's enforcement-heavy approach under his leadership.
Bitcoin-related stocks have also see gains lately. MicroStrategy (MSTR), which owns over 402,100 bitcoin—worth over $40 billion at current prices—is up more than 540% year-to-date.
It had already been a busy year for bitcoin, with the approval of spot bitcoin ETFs and a "halving" that slowed down the pace at which new bitcoin are brought into supply. A supply-demand imbalance has helped drive bitcoin prices higher.
Still, some experts warn against use of excessive leverage and
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