Bitcoin (BTC-USD) hovered near the $100,000 mark, buoyed by indications that advocates of the cryptocurrency industry are poised to influence financial regulations in the United States under President-elect Donald Trump.
In a significant turn of events, Brian Quintenz has positioned himself as a leading candidate to take the helm of the Commodity Futures Trading Commission. Quintenz serves as the head of policy at a16z Crypto, the digital asset division of the prominent venture capital firm Andreessen Horowitz, and has previously held the position of Republican commissioner at the CFTC.
As of 10:49 a.m. on Thursday in Singapore, Bitcoin traded at $101,000, maintaining a significant portion of a nearly 5% increase from the previous day, marking the most significant gain in two weeks. Smaller tokens exhibited movement within relatively narrow ranges.
Former President Trump’s efforts to reverse the Biden administration’s stringent cryptocurrency regulations have contributed to Bitcoin reaching a record high of $103,800 on December 5. The cryptocurrency has fluctuated around the six-figure mark.
On Wednesday, investor sentiment was bolstered by growing expectations for a potential reduction in interest rates by the Federal Reserve. Speculators increased their wagers on a potential interest rate cut following the alignment of US consumer-price inflation with expectations. The anticipation of more relaxed monetary policies propelled the Nasdaq 100 stock index, heavily weighted in technology, to achieve a new all-time high.
Henry Elder, a principal at UTXO Management, remarked, “The market responds positively to inflation figures that align with expectations,” while noting that traders are currently assessing whether $100,000 serves as a ceiling or a floor.
In addition to advocating for supportive regulations, Trump has endorsed a strategic national Bitcoin stockpile. However, the practicality of this concept has drawn scepticism from various quarters. During an appearance on Bloomberg Television, the president-elect’s son, Eric Trump, stated that his father is poised to be “an unbelievable ally to the industry.”
Donald Trump, once a critic of digital assets, has shifted his stance as the industry invested heavily in advocating for its interests during the US election campaign. The Republican has embarked on his ventures within the cryptocurrency realm, a sector often marked by its contentious nature and a track record of instability, fraud, and illicit activities.
Since Trump’s victory in the US election on November 5, Bitcoin, the market leader, has experienced a significant increase of approximately 50%. This surge has been supported by a net inflow of around $11 billion into US spot-bitcoin exchange-traded funds during this timeframe. Products comparable to Ether, the second-largest digital asset, have garnered an impressive $2.4 billion investment.