Cryptocurrency bulls are struggling to push Bitcoin closer to the historic $100,000 mark, amid expectations of more supportive steps for the sector from US President-elect Donald Trump.
The cryptocurrency, the largest by market capitalization, is trading at around $96,600 at this point in today’s trading, up about 1% in the past 24 hours on Wednesday, after gaining more than 40% since Trump’s election victory on Nov. 5. This comes amid the president-elect’s plans to roll back restrictions imposed by the Biden administration on digital assets.
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Fierce competition
Key regulatory posts, such as the chair of the Securities and Exchange Commission and the Commodity Futures Trading Commission, are being contested by crypto-friendly candidates, while the Trump transition team is exploring the possibility of creating a senior White House position dedicated to digital asset policy. And on Wall Street, there are clear signs of a growing willingness to engage with the controversial market.
Trump has promised to make the United States a global hub for cryptocurrencies, and has discussed the idea of creating a strategic reserve of Bitcoin, although there are doubts about how realistic this proposal is.
In this context, Jarrett Seeberg, an analyst at TD Coin, pointed out that the idea of a Bitcoin reserve contradicts Trump's traditional view that the US dollar is the world's main currency.
“Trump will likely continue to bring up the idea of a bitcoin reserve on social media or in speeches, but turning that rhetoric into actual policy will take a lot of political effort,” Seeberg added.
Paul Atkins, a well-known supporter of cryptocurrencies, is a leading candidate to succeed Gary Gensler as chairman of the SEC. Gensler has led a crackdown on illegal practices in the digital asset sector, which witnessed a massive collapse in 2022 that caused huge losses for investors.
Since Trump’s victory, the cryptocurrency market has surged by $1.3 trillion in value. This surge is reminiscent of the madness that digital assets experienced during the COVID-19 bubble.
On November 22, Bitcoin came close to breaking the $100,000 barrier for the first time, but later retreated from that level, raising questions about its ability to maintain this momentum.
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Tensions in South Korea affect the market
In South Korea, the prices of Bitcoin and other coins such as XRP and Dogecoin have seen sharp fluctuations due to political unrest.
South Korean President Yoon Suk-yeol declared martial law on Tuesday evening amid sharp disagreements with the opposition, but he backed down hours later after parliament rejected the move, roiling global markets and sending bitcoin prices on local exchanges to below $72,000 in a short period.