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Despite a notable pause in its upward trend, Bitcoin (BTC) is approaching the all-time $100,000 mark, driven 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, acting as support for the past 24 hours. This reflects a notable 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 alter the cryptocurrency landscape in the United States.
The Republican Party is already taking a position cryptocurrency friendly candidates lead key regulatory bodies, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
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Additionally, discussions within Trump’s transition team have included the possible creation of a dedicated position in the White House focused on digital asset policy.
President-elect Trump has expressed his ambition to establish the United States as the global center of cryptocurrencies, even proposing the concept of a national Bitcoin reserve. However, analysts are skeptical about the viability of this idea.
Jaret Seiberg by TD Cowen noted that while Trump may advocate for a Bitcoin reserve in public forums, its implementation would require significant political capital, especially given his firm stance on maintaining the US dollar’s status as the world’s primary currency.
Cryptocurrency advocate Paul Atkins He is considered a strong candidate to replace outgoing SEC Chairman Gary Gensler. The current president officially announced his resignation last week, effective January 20, the day of Trump’s inauguration.
Gensler has played a key role in enforce compliance in the digital asset space, especially after a tumultuous 2022 that saw a major market decline and significant financial losses for investors following the implosion of the FTX exchange, once run by Sam Bankman.
Political instability in South Korea causes Bitcoin prices to fall below $72,000
Bitcoin and other cryptocurrencies, such as XRP and Dogecoin (DOGE), have experienced notable price discrepancies in South Korea due to local political instability.
Following the imposition and subsequent annulment of martial law by President Yoon Suk Yeol, the price of Bitcoin in South Korean 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 staggering surge since Trump was declared president-elect, with the 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, recording slight losses of 0.2%, but halting the bullish trend seen in recent months. Over the past 8 hours, attention has been focused on altcoins such as BNB, which hit a new high, and XRP, which is trading just 20% below its all-time high.
Featured image of DALL-E, chart from TradingView.com
