Bitcoin, the world’s largest cryptocurrency, hit an all-time high of $103,844 late Wednesday night, breaking its previous peak of $99,768 in late November. The milestone is being attributed to a combination of factors, including President-elect Donald Trump’s regulatory appointments and Powell’s remarks likening bitcoin to "digital gold."
At the time of writing, bitcoin hovers around $103,000, with market analysts speculating on whether it will maintain its upward trajectory or face short-term corrections. Crypto-related stocks and exchange-traded funds (ETFs) also rallied on the news, with Coinbase (COIN) and MicroStrategy (MSTR) gaining ground in premarket trading.
Federal Reserve Chair Jerome Powell played a key role in boosting bitcoin’s appeal to investors during a speech Wednesday. Powell described bitcoin as “digital gold,” a term frequently used to highlight its potential as a store of value. Notably, Powell downplayed concerns about bitcoin as a competitor to the U.S. dollar, signaling little regulatory pushback from the Fed.
These remarks have added fuel to the ongoing cryptocurrency rally, cementing bitcoin's place in mainstream financial markets.
President-elect Donald Trump is furthering the narrative of a crypto-friendly future. This week, he announced Paul Atkins, a former SEC Commissioner known for his pro-crypto stance, as his pick to lead the Securities and Exchange Commission (SEC). Atkins, who co-chairs the Digital Chamber's Token Alliance, has long advocated for reducing regulatory barriers for cryptocurrencies.
Trump’s personal interest in digital assets also adds intrigue. His media company, Trump Media and Technology Group, is reportedly in talks to acquire crypto trading firm Bakkt. Meanwhile, the Trump family launched its own crypto initiative, World Liberty Financial, earlier this year.
These moves have created expectations for a regulatory environment that fosters innovation in the cryptocurrency sector, further fueling the market’s bullish outlook.
While bitcoin’s historic rise has drawn widespread attention, experts caution against overexuberance. The cryptocurrency market remains highly volatile, and analysts recommend investing only what one can afford to lose.
As bitcoin surpasses this significant milestone, investors and industry watchers are closely monitoring whether the newfound optimism will lead to sustained growth or another wave of turbulence in the ever-volatile crypto market.