The time has come: Fueled by a weeks-long crypto rally unleashed by Donald Trump's election victory, the Bitcoin price has just reached this historic milestone. In the past seven days alone, the price rose about eight percent. As a result, Bitcoin's market capitalization now exceeds two trillion dollars.

The altcoin market is also currently in a state of euphoria. The total market capitalization of the crypto market reached $3.8 trillion, also a new record.

What is behind this rise?

The surge was further bolstered by the announcement that Donald Trump has nominated Paul Atkins as the new chairman of the U.S. Securities and Exchange Commission (SEC). Atkins is known as an outspoken crypto-friendly candidate, unlike current SEC Chairman Gary Gensler.

$IBIT is now over $50b. It took it 228 days to reach this milestone, the next fastest ETF to reach 50b was $IEFA in 1,329 days. So over 5x faster than any ETF ever launched. Ridiculous. h/t @JackiWang17 for the data https://t.co/K9vRfAir8U
— Eric Balchunas (@EricBalchunas) December 5, 2024

The impact of this development is significant. According to Eric Demuth, this marks a turning point for the crypto market:
"The world's largest financial market is on the eve of a new, liberal and crypto-friendly regulation. This is a historic moment for the industry."

Bloomberg analyst Eric Balchunas points to the successful debut of BlackRock Bitcoin options as another key driver. Within a single day, nearly $2 billion was raised, further strengthening institutional investors' interest in Bitcoin.

A historic moment, but caution needed

The Fear & Greed Index currently stands at 84, representing "extreme greed." This may signal that the market is ripe for a correction. Nevertheless, interest remains high: open volume for Bitcoin futures currently stands at $65 billion.

Meanwhile, MicroStrategy, the company of Bitcoin proponent Michael Saylor, continues to buy BTC continuously. Other major players in the market also continue to invest in the leading crypto-currency.