Bitcoin Shatters Records on Optimism for Regulatory Relief
The price of Bitcoin has reached a new all-time high, extending a significant rally sparked by the recent election. Since the November 5th election results, the world’s leading cryptocurrency has surged over 50%.
Bitcoin briefly surpassed $106,000 before settling around $105,000 in Asian markets on Monday. This dramatic rise is attributed, in part, to the perception of a more crypto-friendly regulatory environment under the incoming presidential administration.
The president-elect has publicly expressed interest in creating a national digital currency reserve, similar to the US strategic oil reserve. This, along with the appointment of pro-cryptocurrency figures to key positions, has fueled investor optimism.
“The Bitcoin rally has been meteoric,” commented Peter McGuire from XM.com, a trading platform. “Fear of missing out (FOMO) is driving the momentum, with many investors expecting the price to reach $120,000 by year’s end, potentially exceeding $150,000 by mid-2025.”
Earlier in November, the incoming administration appointed Silicon Valley entrepreneur David Sacks as its point person for artificial intelligence and cryptocurrency. Sacks, a former PayPal executive and close associate of prominent tech investor Elon Musk, is seen as a proponent of cryptocurrencies.
Additionally, pro-cryptocurrency attorney Paul Atkins is expected to be nominated as the new head of the Securities and Exchange Commission (SEC), the Wall Street regulator. This follows the resignation of the current SEC chair, Gary Gensler, who faced criticism for his stance on cryptocurrencies.
President-elect’s plans to replace Gensler had been previously announced, citing the SEC’s legal actions against cryptocurrency firms. These actions had been a point of contention within the industry.
The recent developments have injected a sense of optimism into the cryptocurrency market, leading to the current record-breaking surge in Bitcoin’s price.
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