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Despite a notable pause in its upward trend, Bitcoin (BTC) is closing in on the all-time $100,000 mark, fueled by expectations of supportive policies for the sector from US President-elect Donald Trump.
On Tuesday, the largest digital asset traded above the key $95,000 mark, serving as support over the past 24 hours. This reflects a remarkable increase of more than 40% since Trump’s election victory on November 5.
Could a national BTC reserve become a reality?
The Trump administration is expected to roll back the Biden administration’s strict regulations on digital assets, which could significantly change the cryptocurrency landscape in the United States.
The Republican Party is already positioning itself crypto-friendly candidates lead major regulatory agencies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
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Additionally, discussions within the Trump transition team have included the potential creation of a dedicated White House position focused on digital asset policy.
President-elect Trump has expressed his ambition to make the United States the global hub for cryptocurrencies, even proposing the concept of a national Bitcoin reserve. However, analysts express skepticism about the feasibility of this idea.
Jaret Seiberg of TD Cowen note that while Trump can advocate for a Bitcoin reserve in public forums, implementing it would require significant political capital, especially given his strong stance on maintaining the status of the U.S. dollar as the primary currency worldwide.
Cryptography advocate Paul Atkins is considered a strong candidate to replace outgoing SEC Chairman Gary Gensler. The current presidency officially announcement his resignation last week, effective January 20, the day of Trump’s inauguration.
Gensler played a key role in enforce compliance in the digital assets space, especially after a tumultuous 2022 that saw a significant market downturn and significant financial losses for investors following the implosion of the FTX exchange formerly run by Sam Bankman.
Political instability in South Korea sends Bitcoin prices falling below $72,000
Bitcoin and other cryptocurrencies, such as XRP and Dogecoin (DOGE), have experienced notable price gaps in South Korea due to local political instability.
Following the imposition and then repeal of martial law by President Yoon Suk Yeol, the price of Bitcoin on South Korean Stock Exchanges fell below $72,000 at one point, reflecting increased risk aversion among investors.
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However, the overall cryptocurrency market has seen a meteoric rise since Trump was declared president-elect, with the total market capitalization increasing by around $1.3 trillion, according to data from CoinGecko.
At the time of writing, BTC is trading at $95,840, posting slight losses of 0.2%, but halting the upward trend seen over the past few months. Over the past 8 hours, the focus has been on altcoins such as BNB, which has reached a new all-time high, and XRP, which is trading just 20% below its all-time high.
Featured image of DALL-E, chart by TradingView.com
