Cryptocurrency speculators are keeping Bitcoin at the milestone level of $100,000, hoping that U.S. President Donald Trump will take further steps to support the industry.
As of Wednesday morning, the trading price of the digital asset was around $97,000, having risen over 40% since Trump’s election victory on November 5. The Republican Party plans to roll back the Biden administration's crackdown on digital assets.
Candidates supporting cryptocurrency are vying for the chairmanship of the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission. Trump's transition team also discussed whether to establish the first White House position dedicated to digital asset policy. On Wall Street, there are increasing signs that people are keen to participate in this controversial market.
Trump's Goals
The newly elected president has promised to make the U.S. a global hub for cryptocurrency, even supporting the idea of establishing a strategic national Bitcoin reserve, although there are doubts about the feasibility of the latter goal.
TD Cowen analyst Jaret Seiberg wrote in a report that Bitcoin reserves clash with Trump's 'firm' belief that the dollar is the world's key currency.
"Trump is likely to continue to tout Bitcoin reserves on social media or mention them in speeches," Seiberg said. "This is starkly different from the significant political capital needed to realize this goal."
Cryptocurrency supporter Paul Atkins is considered a leading candidate to replace Gary Gensler as SEC chair. Gensler initiated a series of enforcement actions against alleged non-compliance and risky behavior in the digital asset space, which was severely impacted in 2022, causing significant losses for investors.
Volatility in South Korea
Earlier, due to political turmoil triggering safe-haven sentiment, the prices of Bitcoin and other tokens in South Korea (such as XRP and meme favorite Dogecoin) diverged significantly from global levels.
Due to deepening rifts with the opposition, South Korean President implemented a state of emergency on Tuesday evening, only to revoke the shocking measure hours later after being condemned by parliament. Global markets were caught off guard, and Bitcoin prices on local exchanges briefly fell below $72,000 on Tuesday.
According to tracking agency CoinGecko, the entire cryptocurrency market has seen record gains since Trump was elected president, rising by approximately $1.3 trillion. This rebound has rekindled enthusiasm for digital assets, reminiscent of the last frenzy during the pandemic bubble. On November 22, Bitcoin first surpassed $100,000 before retreating.
