Bitcoin hits $100,000 as Trump picks cryptocurrency fan to head financial watchdog

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The world’s biggest cryptocurrency, Bitcoin, has been valued at more than $100,000 for the first time, spurred on by Donald Trump’s latest nomination for his presidential team.

The cryptocurrency was valued at $103,280 (£81,160) as of 4.10am UK time, leaping in value by 7.9% in the previous 24 hours, according to currency converter XE.com.

It’s the high water mark of a surge in buying that started on 5 November, the day of the US election.

Since then, the price has risen by around 45% from $69,374 (£54,608).

The rally has also been stoked by a series of the president-elect’s appointments, with Paul Atkins being picked to chair the Securities and Exchange Commission (SEC) on the same day that the cryptocurrency reached its benchmark number.

A former SEC commissioner under George W. Bush, Mr Atkins has frequently made the case against too much market regulation and has been a vocal cryptocurrency advocate.

Image:
Paul Atkins visiting Trump Tower in 2016 Pic: AP

Posting on Truth Social, Mr Trump said of his new appointment: “He believes in the promise of robust, innovative capital markets that are responsive to the needs of Investors, & that provide capital to make our Economy the best in the World.

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“He also recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before.”

What is cryptocurrency?

In simple terms, cryptocurrency is digital money.

It’s designed to work through an online network without a central authority – meaning it is not recorded by any government or bank.

Transactions using crypto such as Bitcoin or Ethereum are instead tracked by technology called the blockchain, an unchangeable shared digital ledger.

Digital coins can be very volatile – meaning their price can fluctuate rapidly – and are mostly unregulated.

The UK’s Financial Conduct Authority considers crypto high-risk and has called for regulation.

Previously a sceptic of digital currency, Mr Trump pledged to make the US “the crypto capital of the planet” and create a “strategic reserve” of Bitcoin during this election campaign.

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He was the first presidential candidate to accept donations in crypto-assets, while vice president-elect JD Vance has been strongly supportive of digital currency.

In September, Mr Trump launched World Liberty Financial, a new venture to trade cryptocurrencies.

Jordan Libowitz, a spokesperson for the government watchdog group Citizens for Responsibility and Ethics in Washington, said at the time that Mr Trump’s pro-crypto stance was “troubling… while starting a way to personally benefit from it”.

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