The Rise of Bitcoin: Breaking the $100k Milestone
Investing.com– Bitcoin made headlines as it surged past the critical $100,000 milestone on Friday, driven by growing optimism surrounding the upcoming inauguration of U.S. President-elect Donald Trump next week. The digital currency rose 2% to $101,372.1 by 01:01 ET (06:01 GMT).
Bitcoin above $100k on expectations of friendlier crypto policies under Trump
In the lead-up to President-elect Donald Trump’s inauguration on January 20, Bitcoin has experienced a significant surge, recently reaching a record high of $108,244. This upward trajectory is largely attributed to the anticipation of crypto-friendly policies under the incoming administration.
Trump is preparing to sign an executive order making cryptocurrency a national policy priority and granting industry leaders a significant role in shaping regulations, Bloomberg reported on Friday citing sources. Notably, the order may create a national Bitcoin stockpile using the government’s $20 billion in confiscated Bitcoin holdings, the report stated.
Trump’s campaign promises, including the potential creation of a strategic reserve and the appointment of cryptocurrency advocates to key regulatory positions, have bolstered investor confidence in the digital asset. The appointment of Paul Atkins, a known crypto advocate, as the prospective chair of the Securities and Exchange Commission (SEC) is particularly noteworthy. Republican officials at SEC are expected to start revising the agency’s cryptocurrency policies, possibly as soon as next week when Trump assumes office, Reuters reported on Wednesday citing sources.
Crypto price today: most altcoins jump tracking Bitcoin, Litecoin surges 16%
In the broader cryptocurrency market, most altcoins jumped much more than Bitcoin, reflecting an increased risk-on sentiment. Ethereum gained 0.2% to $3,374.21. Binance Coin jumped 8.7% to $3.0616. Cardano climbed 5%, and Solana rose 2.3%, while Dogecoin surged 7.7%. Among meme tokens, Shiba Inu gained 2.7%.
Litecoin surged 16% after rising more than 10% a day earlier, amid growing optimism over the possible approval of an LTC-focused exchange-traded fund (ETF). The rally comes after Canary Capital amended its S-1 registration form with the SEC on January 15. Analysts view the amendment as a significant step toward engaging with regulators.
Such filings often suggest that feedback has been received from regulators, with the updates potentially offering insights into the review process. If approved, the proposed ETF would make Litecoin the third cryptocurrency, alongside Bitcoin and Ethereum, to secure a U.S.-approved spot ETF.
Analysis and Implications
As the world’s top investment manager, it is crucial to note the impact of political decisions on the cryptocurrency market. The surge in Bitcoin and altcoin prices following the anticipation of friendlier crypto policies under the upcoming Trump administration highlights the influence of regulatory actions on digital assets’ valuations.
Investors should pay close attention to political developments and policy announcements, as they can significantly affect the prices of cryptocurrencies. The potential creation of a national Bitcoin stockpile and the appointment of cryptocurrency advocates to key regulatory positions signal a shift towards greater acceptance and integration of digital assets into mainstream financial systems.
For individuals looking to diversify their investment portfolios, understanding the implications of regulatory changes on the cryptocurrency market is essential. Keeping abreast of political developments and their impact on digital assets can help investors make informed decisions and capitalize on emerging opportunities in the rapidly evolving financial landscape.