Even though Bitcoin (BTC) isn’t quite breaking through its latest peak, it’s inching closer to the significant $100,000 benchmark, driven by hopes of favorable policies under incoming US President Donald Trump.
This past Tuesday, Bitcoin hovered comfortably above the crucial $95,000 level, maintaining it as a support for the past day. This represents an impressive increase of over 40% since Trump clinched the election on November 5th.
### Are We Moving Toward a National BTC Reserve?
Under Trump’s administration, there’s anticipation of rolling back the tough regulations on digital assets set by the Biden administration. This could dramatically reshape the crypto environment in the US.
The Republican Party is strategically placing crypto-friendly figures in top regulatory roles, eyeing positions at the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Furthermore, Trump’s transition team has discussed the possibility of establishing a dedicated role within the White House focused on digital asset policies.
Possibly positioning the US as the global leader in cryptocurrency, President-elect Trump has floated the idea of a national Bitcoin reserve. However, analysts are questioning how feasible this might be. Jaret Seiberg of TD Cowen points out that while Trump could publicly support a Bitcoin reserve, he would need substantial political leverage to bring it to fruition, especially given his firm belief in maintaining the US dollar’s dominance.
Paul Atkins, a well-known crypto supporter, is being considered to succeed outgoing SEC Chairman Gary Gensler. Gensler, who announced his resignation effective January 20, the day Trump takes office, has been instrumental in enforcing digital asset compliance, especially following a turbulent 2022 that saw a market downturn and the dramatic collapse of the FTX exchange once led by Sam Bankman.
### Political Tensions in South Korea Impact Bitcoin
Bitcoin, along with other cryptocurrencies like XRP and Dogecoin (DOGE), has seen price fluctuations in South Korea amidst local political instability.
Amidst martial law being imposed and then lifted by President Yoon Suk Yeol, Bitcoin prices on South Korean exchanges dropped below $72,000, signaling increased investor caution.
Nonetheless, the crypto market overall has surged since Trump was named president-elect, with market capitalization climbing by about $1.3 trillion, as per CoinGecko stats.
At present, Bitcoin is priced at $95,840, showing a minor 0.2% dip, pausing its recent upward momentum. Conversely, attention is shifting toward altcoins like BNB, which reached a new peak, and XRP, trading about 20% shy of its historical high.
Image sourced from DALL-E; chart information via TradingView.com.
