Despite an apparent pause in its uptrend, Bitcoin (BTC) remains close to the landmark $100,000 mark, boosted by expectations of U.S. President-elect Donald Trump’s supportive policies for the industry.
On Tuesday, the largest digital asset traded above the key $95,000 mark, which served as a support level for the past 24 hours. This represents a significant increase of more than 40% since Trump won the election on November 5.
Can national BTC reserves become a reality?
The Trump administration is expected to reverse the Biden administration’s strict regulations on digital assets, which could significantly change the U.S. cryptocurrency landscape.
Republicans have lined up cryptocurrency-friendly candidates to lead key regulatory agencies, including the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
In addition, there is discussion within the Trump transition team about the possibility of establishing a position in the White House specifically responsible for digital asset policy.
President-elect Trump has said he wants to make the United States a global hub for cryptocurrency and has even floated the concept of a national bitcoin reserve. However, analysts are skeptical about the idea’s feasibility.
TD Cowen’s Jaret Seiberg noted that while Trump may advocate for a Bitcoin reserve in public forums, it would require a lot of political capital to implement, especially given his staunch defense of the dollar’s status as the world’s dominant currency.
Cryptocurrency advocate Paul Atkins is considered a strong candidate to replace outgoing SEC Chairman Gary Gensler, who formally announced his resignation last week, effective January 20, the day Trump is inaugurated.
Gensler has played a key role in compliance enforcement in the digital asset space, especially following a turbulent 2022, when the market fell sharply and investors suffered significant financial losses following the collapse of FTX exchange, once led by Sam Bankman.
Bitcoin price drops below $72,000 amid political instability in South Korea
Bitcoin and other cryptocurrencies such as XRP and Dogecoin (DOGE) have seen a stark price difference in South Korea due to local political instability.
After South Korean President Yoon Seok-yeol imposed and later rescinded martial law, the price of Bitcoin briefly fell below $72,000 on South Korean exchanges, reflecting heightened risk aversion among investors.
However, the entire cryptocurrency market has seen staggering growth since Trump was announced as president, with total market capitalization increasing by approximately $1.3 trillion, according to data from CoinGecko.
At the time of writing, BTC is trading at $95,840, down slightly by 0.2% but halting the upward trend of the past few months. In the past 8 hours, attention has shifted to altcoins such as BNB, which has hit new highs, and XRP, which is trading just 20% below its all-time high.
