Bitcoin adjacent stocks got a substantial lift after the cryptocurrency’s price jumped over $104,000 on Friday.

Bitcoin mining behemoth, Mara Holdings (NASDAQ: MARA) was the biggest and most vocal, climbing by 13 per cent. It was followed closely by Riot Platforms (NASDAQ: RIOT), MicroStrategy Inc (NASDAQ: MSTR) at 7 per cent and Coinbase Global Inc (NASDAQ: COIN) at 5 per cent.

The original cryptocurrency’s good fortunes have been at the behest of Donald Trump’s election victory, based on the optimistic take that the incoming administration will take a more favourable approach to crypto, and Bitcoin in particular.

In December, Trump appointed Paul Atkins to lead the Securities and Exchange Commission. Atkins, who previously served as an SEC commissioner under President George W. Bush, has recently focused on digital assets. He is set to replace Gary Gensler, widely regarded as a crypto critic. Trump will also likely replace several SEC commissioners whose terms are set to expire during his administration.

Furthermore, crypto advocates and holders will soon shape U.S. policy on the emerging technology, following a series of nominations and advisory appointments by President-elect Donald Trump, who takes office on Monday.

The crypto industry, after years of battling lawsuits and enforcement actions by the U.S. government, hopes the Trump administration will signal a policy shift. Officials will vet political appointees for potential conflicts, and some appointees have pledged to sell their interests.

The industry will host a sold-out black-tie ball in Washington on Friday, with ticket prices ranging from USD$2,500 to USD$10,000. David Sacks, serving as Trump’s artificial intelligence and crypto czar, plans to attend.

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Trump’s tenure will be cryptocurrency friendly

The reasons for the optimism surrounding the cryptocurrency’s future don’t necessarily begin and end with Trump either.

The president-elect has filled his inner-circle with a number of different cryptocurrency friendly personalities, most of whom are well-known and well-respected in the space.

Scott Bessent, a billionare hedge fund manager, is Trump’s pick for Treasury Secretary. He has expressed favourable views on cryptocurrency. According to a financial disclosure filed last month, Bessent holds shares in a BlackRock bitcoin exchange-traded fund valued between $250,001 and $500,000.

“Crypto is about freedom and the crypto economy is here to stay,” he said in July. “I think everything is on the table with bitcoin.” ‘

In a letter to the U.S. Treasury last week, Bessent stated he would divest his interests in the fund and other investments within 90 days of his confirmation.

Further, Trump selected Tesla’s chief and the world’s richest man to lead a government cost-cutting initiative called the Department of Government Efficiency (DOGE).

Elon Musk, a longtime advocate for cryptocurrencies like bitcoin and dogecoin, has significantly influenced their prices through his public comments and the actions of his companies. The acronym for Musk’s cost-cutting agency, DOGE, references dogecoin, now the seventh-largest cryptocurrency with a circulation value of $4.5 billion, according to CoinGecko.

In 2021, Tesla purchased $1.5 billion in bitcoin, making it one of the largest companies to invest in cryptocurrency before selling most of its holdings. By September 2024, Tesla reported holding $184 million in unspecified digital assets, according to a financial statement. Musk did not respond to a request for comment via Tesla regarding his personal cryptocurrency holdings.

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Trump to encourage leadership in crypto

Vice President-elect J.D. Vance held between USD$250,001 and USD$500,000 in bitcoin as of August 2024, according to a financial disclosure.

Vance co-founded the venture capital firm Narya, which has invested in Strive, Ramaswamy’s asset management company, and the video platform Rumble, as indicated on its website. In November, Rumble announced plans to allocate its excess cash reserves to bitcoin. The company also received a USD$775 million investment from stablecoin firm Tether last year.

When asked for comment on the crypto stances of Vance and Trump’s sons, Trump-Vance transition spokesperson Brian Hughes stated—without providing evidence—that bureaucrats in Washington had attempted to stifle innovation with increased regulation and higher taxes.

“President Trump will deliver on his promise to encourage American leadership in crypto and other emerging technologies,” he said in a statement.

Finally, set to collaborate with Musk at DOGE, former presidential candidate and entrepreneur Vivek Ramaswamy is the founder of Strive Asset Management.

Strive reported managing over USD$1 billion in assets as of September, and filed last month to launch an exchange-traded fund (ETF) that invests in corporate bonds for bitcoin investments.

In November, the company launched a wealth management arm aimed at integrating bitcoin into Americans’ investment portfolios, according to a press release from Ramaswamy.

In June 2023, Ramaswamy disclosed holding between $100,001 and $250,000 in bitcoin and between $15,001 and $50,000 in ether, a smaller cryptocurrency.

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