Bitcoin surged by 5.4% yesterday, resuming its march towards the $100k mark. The sudden Bitcoin price resurgence is presumably credited to the heated debate behind the successors of top U.S. regulatory agencies.
Bitcoin’s recent rally to $100k was temporarily cut short by a losing streak of four consecutive days. The dip saw Bitcoin plummet by nearly 10% from an all-time high of $99,800 to $90,742. However, the market appears to have partially recovered and has resumed its upward trajectory to the $100k mark.
Bitcoin makes a partial recovery after a three-day losing streak
According to CoinMarketCap, Bitcoin is trading at $95,565 at the time of this publication. Although the asset’s seven-day gain has largely remained unchanged, its 24-hour gain has risen to 3%.
During the U.S. election campaigns, Trump won the hearts of crypto voters after publicly declaring his support for digital assets. The former president made a number of promises to the crypto community involving regulatory clarity and boosting the crypto mining sector.
He mentioned that his administration would end the years-long war on crypto imposed by the Bidden Harris administration and promised never to sell the 200,000 bitcoins held by the U.S. government.
His pledge to establish a strategic Bitcoin reserve has sparked bullish sentiment across the industry. As a result, the Chinese government, through a Shanghai court, recently announced that personal ownership of digital assets is not against Chinese regulations, bringing clarity to crypto holders in mainland China.
Bitcoin’s recent performance happened amid intensifying discussions on who will lead the top U.S. regulatory agencies when President-elect Donald Trump assumes office on January 20th.
Speculations intensify on the next U.S. SEC chair
A number of candidates who have come forward to vie for the top positions of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have showcased their support for the digital asset ecosystem aligning with Trump’s overall plan to foster industry growth.
Trump promised to remove the current U.S. SEC chair, Gary Gensler, on his first day in office. Gensler’s approach to crypto regulations has largely been offensive and uncertain. The executive recently announced his resignation, effective in January when Trump’s administration takes over.
Rumors on the internet reveal that Trump’s team may be considering former U.S. SEC commissioner Paul Atkins as the next U.S. SEC chair. Atkins has a strong reputation for initiating deregulation and is reportedly being vetted as a possible replacement for outgoing U.S. SEC chair Gary Gensler. On the other hand, most or all potential contenders vie to head the derivatives regulator CFTC, which would likely be friendly toward the crypto market.
The digital asset ecosystem has witnessed a major market cap surge of about $1 trillion since Trump emerged victorious in the U.S. presidential elections held on November 5th. Trump’s victory fueled institutional interests in Bitcoin as an investment vehicle, a store of value, and a hedge against inflation.
According to data from the ETF tracking website SosoValue, Spot Bitcoin Exchange-Traded Funds (ETFs) have witnessed cumulative inflows worth about $7 billion since November 6th, 2024. The funds cumulatively hold $104.32 billion worth of Bitcoin, equivalent to 5.46% of the asset’s market capitalization.
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