The oldest and largest cryptocurrency took a history-making step on Wednesday evening. After getting close and moving back a few times, Bitcoin (CRYPTO: BTC) finally crossed the $100,000 price point for the first time.
How important is this milestone for Bitcoin and its investors, and where will the leading cryptocurrency go from here?
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Let's think about that for a minute.
What happened?
Bitcoin had been hanging around just below $100,000 for a while. The coin rose above $99,340 on Nov. 22, retreated below $91,300 over the next week, and then bounced between $45,000 and $98,000 for a few days.
Wednesday's surge started around noon ET. Rising from a 24-hour low of roughly $94,800, the coin reached a $98,000 plateau four hours later. Near 9:30 p.m. ET, one of my market-tracking apps buzzed in my pocket, saying that Bitcoin was nearing the $99,000 level. Less than 10 minutes after that, I watched a live Bitcoin price tracker skip from a bunch of 9s to just above the legendary $100,000 mark.
The surge didn't stop there, and Bitcoin rose above $102,000 while I wrote the paragraphs above. Time flies when you're having fun in the crypto space.
As for the reasons behind this sudden spike, Bitcoin investors lionized the incoming Trump administration's nominee to lead the U.S. Securities and Exchange Commission (SEC). Current SEC Chairman Gary Gensler hasn't provided much support to the crypto industry, but he recently preannounced his January resignation. On Wednesday evening, President-elect Trump said he wants the crypto-friendly Paul Atkins to take Gensler's seat. Bitcoin didn't immediately soar when the Atkins pick was published, giving investors a few hours to mull over the implications of the Atkins pick.
How Atkins and the SEC fit into the Bitcoin puzzle
The SEC chair doesn't hold absolute power over how Bitcoin and other cryptocurrencies will be regulated. But this officer can steer the SEC in a certain direction, and Atkins certainly looks like a more crypto-friendly regulator than Gensler.
Atkins has said that the SEC should "update its regulations concerning custody of digital assets," using stronger tools than mere guidelines in staff accounting bulletins. He is also a well-known proponent of free market forces, often suggesting that the government should play a very limited role in how people and companies manage their assets -- including cryptocurrencies.
So the bullish market reaction to this nomination makes a lot of sense. It remains to be seen whether Atkins is confirmed to this post and how his SEC leadership works out in the real world, but his presence seems to have some upside for crypto investors.
More Bitcoin catalysts
Zooming out from Wednesday's big benchmark, Bitcoin has several potentially price-boosting catalysts in play right now:
Long story short, Bitcoin has plenty of fuel for a potential bull run in 2025. The incoming SEC leader may add weight to the upward momentum but he isn't the whole story. Likewise, this week's passing of the $100,000 waypost is a unique moment in Bitcoin's history, but it's also just another step in a long journey.
How to approach Bitcoin in 2025
For these reasons, I think it's a good idea to have some exposure to Bitcoin and other leading cryptocurrencies right now. You can start a crypto brokerage account and grab the real thing, or take the alternate route through ETF shares.
Either way, crypto assets look ready to play a supporting part in any properly diversified portfolio. If you don't have any yet, this could be be a good time to get started.
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