Bitcoin Reclaims $100,000 Mark Amid Positive Regulatory Developments
Bitcoin (BTC) regained the crucial $100,000 threshold on Wednesday after weeks of consolidation. This rebound is linked to increased confidence in the digital currency sector's regulatory environment under President-elect Donald Trump.
Bitcoin Price Nears Record Peaks
The regulatory landscape is set for major changes, with Brian Quintenz being a strong candidate to lead the Commodity Futures Trading Commission (CFTC). Quintenz, currently head of policy at a16z Crypto and a former Republican CFTC commissioner, is viewed favorably by the crypto community.
This follows the appointment of pro-crypto Paul Atkins to lead the US Securities and Exchange Commission (SEC), positioning him to reshape the agency after years of stringent regulation under retiring chair Gary Gensler.
Trump’s efforts to reverse the Biden administration's crackdown on crypto have aided Bitcoin’s recovery, which reached an all-time high of $104,000 on December 5. Since then, Bitcoin has fluctuated around this six-figure mark, reflecting ongoing investor interest.
Additionally, expectations for a potential reduction in interest rates by the US Federal Reserve have further enhanced investor sentiment.
Bullish Sentiment Grows
With US consumer-price inflation meeting forecasts, speculators are increasing their bets on a new interest rate cut. This shift in monetary policy expectations has positively impacted markets, driving the tech-heavy Nasdaq 100 stock index to record highs.
Henry Elder from UTXO Management stated that the market reacts positively to inflation aligning with expectations, noting traders are evaluating whether $100,000 will serve as a ceiling or floor for BTC prices.
Trump has shown a commitment to creating a more favorable regulatory environment and has also backed the idea of a strategic national Bitcoin stockpile. Eric Trump recently expressed on Bloomberg Television that his father would be "an unbelievable ally to the industry."
Since Trump’s election victory on November 5, Bitcoin has surged nearly 50%, boosted by approximately $11 billion in net inflows into US spot Bitcoin exchange-traded funds (ETFs).
Technical analyst Ali Martinez highlighted that whale investors are actively buying dips, with 342 wallets holding over 100 BTC created during the price drop from $104,000 to $90,000. This accumulation trend supports a bullish outlook, with Martinez projecting Bitcoin could reach $275,000 based on a cup-and-handle formation observed on its one-week chart.
Featured image from DALL-E, chart from TradingView.com