Key takeaways
- Bitcoin topped $100,000 again on Wednesday, rallying after recently slipping below $90,000 for the first time since November.
- Inflation data and a Reuters report encouraging crypto supporters likely pushed the leading cryptocurrency higher.
- The SEC could change its crypto policy as soon as next week and ongoing enforcement actions could be suspended, according to Reuters.
Bitcoin rallied above $100,000 on Wednesday, rising on fresh inflation data that boosted stocks and regulatory news seen as bullish for the cryptocurrency.
Bitcoin has recently been trading just below the six-figure level. Its latest measures follow the publication of better-than-expected data on the consumer price index and a Reuters report on regulatory developments seen as potentially underway for the crypto industry in the incoming Trump administration.
The rise also follows a volatile period for bitcoin, which on Monday fell below $90,000 for the first time since mid-November.
The CPI news indicated that the Federal Reserve may be more likely to lower interest rates in the future, allaying some investors’ fears of an extended pause or even higher rates. Falling Treasury rates and yields tend to cause investors to seek yield in riskier assets.
The Securities and Exchange Commission’s new leadership plans to review the agency’s crypto policies as early as next week, Reuters reported. The SEC could provide clearer guidance on when a crypto asset is considered a security, a clarification demanded by crypto exchanges like Coinbase. Certain coercive measures of the Biden administration could also be frozen, Reuters reported.
In an interview with Yahoo! Yesterday, outgoing SEC Chairman Gary Gensler shared his belief that current laws and regulations can be applied to the crypto industry, and the problem crypto exchanges face is that they don’t like everything just not the law.
