x
Analytics Economy Politics USA

Bitcoin Surges Toward $100,000 as Crypto Advocates Eye Key US Regulatory Roles

Bitcoin Surges Toward $100,000 as Crypto Advocates Eye Key US Regulatory Roles
Reuters
  • PublishedNovember 29, 2024

Bitcoin is seeing a significant surge, climbing back toward the $100,000 mark, fueled by optimism surrounding the potential influence of crypto-friendly candidates set to shape US financial regulations under President-elect Donald Trump, Bloomberg reports.

On Wednesday, Bitcoin surged by more than 10%, reaching $97,361 before easing slightly to $96,400 in early trading on Thursday in Asia.

The rise in Bitcoin’s value follows growing indications that the Trump administration may move toward a more supportive stance on digital assets, with leading figures in the cryptocurrency industry emerging as potential heads of key US regulatory bodies. This sentiment was further bolstered by Trump’s pledge to undo the Biden administration’s crackdown on digital assets and to foster industry growth, including the creation of a national Bitcoin stockpile.

One of the most notable developments is the potential appointment of Paul Atkins, a known crypto supporter, as the next chair of the Securities and Exchange Commission (SEC). Atkins, who is said to be under consideration for the role, would replace Gary Gensler, the current SEC chair who has become a controversial figure in the crypto community. Gensler has been at the forefront of enforcement actions against digital asset companies, focusing on issues of noncompliance and market risks.

In addition to the SEC, several candidates are reportedly being considered to head the Commodity Futures Trading Commission (CFTC), the agency that regulates derivatives markets. These potential appointees are also expected to be more crypto-friendly, further fueling hopes for a more accommodating regulatory environment for digital assets.

Bitcoin’s recent price movement reflects this growing optimism, having come within $300 of hitting the $100,000 milestone on November 22. While the price briefly retraced by about $9,000 over the following days, many in the crypto community view the six-figure price tag as a sign of Bitcoin’s increasing legitimacy as a store of value and a hedge against inflation.

Following Trump’s victory in the November 2024 election, there has been a noticeable surge in the crypto market, with Bitcoin’s value increasing by approximately $1 trillion. This momentum is also reflected in the growing investment in Bitcoin exchange-traded funds (ETFs), which have attracted nearly $6.8 billion in inflows since Trump’s election win.

However, Bitcoin’s rapid rise is not without its critics. Nouriel Roubini, an economist known for predicting the 2008 financial crisis, has repeatedly warned about Bitcoin’s volatility. On Bloomberg Television, he reiterated his stance, advising investors seeking wealth preservation to avoid Bitcoin due to its high volatility.

Despite the mixed views on Bitcoin’s future, analysts remain optimistic. Alex Thorn, head of research at Galaxy Digital, noted that once speculative investments settle and short-term profit-taking subsides, Bitcoin could find a stronger support base and may continue its march toward surpassing the $100,000 mark.

Written By
Joe Yans