Political Turmoil in South Korea Drives Bitcoin Prices Below $72,000
Bitcoin (BTC) is nearing the $100,000 mark, trading above $95,000, reflecting a 40% increase since Donald Trump's election victory on November 5.
Could A National BTC Reserve Become Reality?
Trump's administration is anticipated to reverse previous regulations on digital assets, potentially reshaping the cryptocurrency landscape in the US. The Republican party is positioning crypto-friendly candidates for key regulatory roles, including the SEC and CFTC.
Discussions have included creating a White House position dedicated to digital-asset policy. Trump aims to establish the US as the global cryptocurrency hub and has proposed a national Bitcoin reserve, though analysts question its feasibility due to the need for significant political support and the importance of the US dollar's status.
Jaret Seiberg from TD Cowen highlighted that while Trump may advocate for a Bitcoin reserve, implementing it would be complex. Paul Atkins is a leading candidate to replace outgoing SEC chairman Gary Gensler, who resigned effective January 20, coinciding with Trump's inauguration. Gensler oversaw compliance measures in the digital asset space following a challenging 2022 for investors.
Political Instability In South Korea Drives Bitcoin Prices Below $72,000
Bitcoin and other cryptocurrencies, such as XRP and Dogecoin (DOGE), faced price fluctuations in South Korea amid local political turmoil. After martial law was imposed and then lifted by President Yoon Suk Yeol, Bitcoin's price on South Korean exchanges fell below $72,000, indicating investor risk aversion.
Despite this, the overall cryptocurrency market capitalization surged by approximately $1.3 trillion since Trump's election, according to CoinGecko data.
BTC is currently trading at $95,840, showing slight losses of 0.2%, while attention is shifting to altcoins like BNB, which reached a new record high, and XRP, trading about 20% below its all-time high.
Featured image from DALL-E, chart from TradingView.com