Bitcoin (BTCUSD) traded above $100,000 for the first time ever in late trading on Wednesday.

The largest cryptocurrency by market capitalization hit a new high of $101,419, according to data from TradingView. The latest price surge came after President-elect Donald Trump nominated crypto advocate Paul Atkins to head the US Securities and Exchange Commission (SEC).

Thanks to a post-election rally, Bitcoin almost broke $100,000 in November and later fell as low as $91,000 on profit-taking.

This rise in Bitcoin prices was largely driven by expectations that there would be more clarity on cryptocurrency regulation and a more crypto-friendly government since Trump’s election victory, with investors also putting money into Bitcoin alongside crypto-related stocks and exchange-traded funds.

Investor optimism continues to drive Bitcoin prices

Investors have welcomed news that the new government has set up a cryptocurrency advisory board and possibly a strategic Bitcoin reserve.

Atkins’ appointment as SEC chairman was seen as further good news for the crypto industry after the agency’s current head, Gary Gensler, announced his resignation from the position. Gensler has often been criticized by crypto supporters for the SEC’s enforcement-heavy approach under his leadership.

Bitcoin stocks have also seen gains recently. MicroStrategy (MSTR), which owns over 402,100 bitcoins – worth over $40 billion at current prices – is up more than 540% year-to-date.

A few missteps, but Bitcoin bulls are undeterred

It’s already been a busy year for Bitcoin, with the approval of spot Bitcoin ETFs and a “halving” slowing the pace at which new Bitcoins are released into the market. An imbalance between supply and demand has helped drive Bitcoin prices higher.

Still, some experts warn against excessive leverage and overconfidence on the part of investors. Mike Novogratz, CEO of Galaxy Investment Partners, said he expects Bitcoin price to rise back towards $80,000.

“The crypto community is under pressure, so there will be a correction,” he recently said on CNBC.

While the price of the cryptocurrency has plummeted in recent days, Bitcoin bulls have remained undeterred.

In the short term, the price could be driven higher by a flurry of corporate purchases as Bitcoin gains traction as a mainstream investment in the longer term and sudden price volatility offers buying opportunities.

“One reason Bitcoin declines have been so severe in the past is that every time BTC fell, people worried that it would fall to $0. “That’s now off the table, and there are a growing number of investors looking for that as an entry point instead,” Matt Hougan, CIO of Bitwise Investment, said in late November.