Crypto stocks enjoyed a brief rally before changing direction on Thursday after Bitcoin (BTC-USD) rose to a record high above $100,000. This record was fueled by President-elect Donald Trump’s news that he would appoint crypto-friendly Paul Atkins to head the US Securities and Exchange Commission (SEC).

Bitcoin traded as high as $103,500 early Thursday but fell back below $100,000 later in the day.

Coinbase (COIN) shares rose as much as 5% on Thursday morning, but ended the trading day down over 3%. Despite the loss, shares are up over 80% for the year.

MicroStrategy (MSTR) – a software company that is the largest corporate investor in Bitcoin and has adopted the cryptocurrency as its primary treasury reserve asset – saw shares rise over 8% before changing direction. Bitcoin miner Riot Platforms (RIOT) rose more than 6% early Thursday but also quickly reversed course. MicroStrategy and Riot fell nearly 5% by the close.

Oppenheimer CEO and senior analyst Owen Lau warned investors that Bitcoin could reach record levels in a recent interview with Yahoo Finance.

“Advice No. 1: Be careful when you reach the $100,000 mark,” Lau said. “There may be some selling pressure and people are looking for the next breakout level.” As Yahoo Finance’s David Hollerith reported, Atkins supports cryptocurrency regulations that don’t block innovation or impose what he sees as unnecessary oversight.

Atkins is expected to replace Gary Gensler, who led a massive crackdown on the industry at the SEC. The agency regularly pursues actions against crypto fraud, from small fines against unregistered brokers of crypto assets to major cases against FTX, Coinbase and Binance.

Proponents of Gensler’s SEC believed it was high time the industry addressed the shady dealings of many of its players, while crypto advocates – even within the agency – said the aggressive campaign against the sector was stifling innovation.

Trump’s election was seen as a huge advantage for the crypto sector.

The president-elect attended the annual Bitcoin conference in July during his campaign. His opponent, Kamala Harris, also expressed her support for the sector.

In addition to Atkins, other members of Trump’s Cabinet are also considered cryptocurrency advocates, with Vice President-elect JD Vance and several of Trump’s presidential nominees having disclosed or discussed exposure to cryptocurrencies through asset ownership or business interests in the past.

Trump’s transition team is reportedly discussing the possible creation of a new role in the White House for a “crypto czar” to oversee Bitcoin policy.

The story continues