The digital asset rose the most in more than two weeks on Wednesday to hit $97,361, before easing to $95,500 as of 5:45 a.m. Thursday in London. Crypto supporters emerged as leading candidates to run the Securities and Exchange Commission and the Commodity Futures Trading Commission, aiding sentiment.
The president-elect has vowed to undo a crackdown on digital assets imposed by the Biden administration and instead foster industry growth, including setting up a national Bitcoin stockpile. The Republican’s pledges ignited a wave of optimism that lifted the token to within a whisker of a record $100,000 last week, before the mood turned cautious as traders awaited concrete steps.
Crypto Tracker
Possible SEC Head
Crypto supporter Paul Atkins has emerged as a top candidate to replace Gary Gensler as SEC chair, according to people familiar with the matter. Gensler launched a flurry of enforcement actions over alleged noncompliance and risky practices in the digital-asset sector, becoming the industry’s bete noire.
Meanwhile, most or all of the potential contenders to head the CFTC, the derivatives regulator, would likely be friendly toward the crypto market, which has surged about $1 trillion since Trump’s victory in the US election on November 5.
Trump’s transition team has also held discussions over whether to create the first White House post dedicated to digital-asset policy. On Wall Street, there are growing indications of more willingness to engage with the nascent market.
Bitcoin came within $300 of the landmark $100,000 mark on Nov. 22 before shedding about $9,000 over the subsequent four days. Crypto’s adherents view the six-figure number as a validation of contested claims that Bitcoin is a modern-day store of value and a hedge against inflation risk.
Roubini’s Warning
Critics such as Nouriel Roubini – famed for warning of a disaster ahead of the 2008 financial crisis – disagree. “Bitcoin is highly volatile,” Roubini said Wednesday on Bloomberg Television. “If you want wealth preservation rather than high volatility, you want to stay away from those types of assets.”
About $6.9 billion has poured into US exchange-traded funds investing directly in Bitcoin in the period following Trump’s election win, show data compiled by Bloomberg.