Wenslus Murape
Bitcoin resumed a climb toward US$100 000 on signs that crypto-friendly candidates will likely shape US financial rules under Donald Trump.
The digital asset rose the most in more than two weeks on Wednesday, hitting US$97 361 at one point, before easing to US$96 400 early in Asia on Thursday. Crypto supporters emerged as leading candidates to run the Securities and Exchange Commission and the Commodity Futures Trading Commission, aiding sentiment.
The president-elect has vowed to undo a crackdown on digital assets imposed by the Biden administration and instead foster industry growth, including setting up a national Bitcoin stockpile.
The Republican’s pledges ignited a wave of optimism that lifted the token to within a whisker of a record US$100 000 last week, before the mood turned cautious as traders awaited concrete steps.
Possible SEC head
Crypto supporter Paul Atkins has emerged as a top candidate to replace Gary Gensler as SEC chair, according to people familiar with the matter. Gensler launched a flurry of enforcement actions over alleged noncompliance and risky practices in the digital-asset sector, becoming the industry’s bete noire.
Meanwhile, most or all of the potential contenders to head the CFTC, the derivatives regulator, would likely be friendly toward the crypto market, which has surged about US$1 trillion since Trump’s victory in the US election on November 5.
Trump’s transition team has also held discussions over whether to create the first White House post dedicated to digital-asset policy.
On Wall Street, there are growing indications of more willingness to engage with the nascent market.
Bitcoin came within US$300 of the landmark US$100 000 mark on November 22 before shedding about US$9 000 over the subsequent four days.
Crypto’s adherents view the six-figure number as a validation of contested claims that Bitcoin is a modern-day store of value and a hedge against inflation risk. – Bloomberg
Critics such as Nouriel Roubini — famed for warning of a disaster ahead of the 2008 financial crisis — disagree. “Bitcoin is highly volatile,” Roubini said Wednesday on Bloomberg Television. “If you want wealth preservation rather than high volatility, you want to stay away from those types of assets.”
About US$6,8 billion has poured into US exchange-traded funds investing directly in Bitcoin in the period following Trump’s election win, according to data compiled by Bloomberg. The 12 ETFs have total assets of about US$100 billion.
“Once some leverage is flushed and shorter term buyers are done taking profits, we believe Bitcoin may find a strong base of support and could make another attempt to surpass the US$100 000 level,” Alex Thorn, head of firmwide research at Galaxy Digital LP, wrote in a note. Bloomberg
