A fanatical fan Bitcoin and the crypto industry in general,they did not hide their certainty that their favorite currency would at some point exceed the mark of 100,000 thousand US dollars and they did not mind that these “prophets” were a bit graphic for many. From dawn (Greek time) on December 5th they have every right to inform those who mocked them for years that the prognosis was not so bad after that.
The explosion in the price of cryptocurrencies of all types and origins was a natural result of the election of Trump,who made it clear that if elected he would follow a very kind policy for the crypto industry. And the fact that he, together with his family and close associates, is directly involved in a crypto project (even though the president made sure that he has no duty in case something goes wrong) shows how close and he is for the crypto industry he is president-elect.
But apart from that, knowing that various players in the crypto industry had boosted his election campaign with at least $200 million, it was very reasonable to expect that Trump would act in a beneficial way for donors. Yesterday’s surge in bitcoin and $100,000 pass is directly related to Trump’s first move directly related to cryptocurrencies, namely the selection of Paul Atkins as the head of the US Securities and Exchange Commission (SEC).
Atkins was a member of the SEC’s board from 2002 to 2008 and is known for his preference for unrestricted oversight rules and for his opposition to the hardline stance of outgoing SEC chairman Gary Gensler.In addition, Atkins is currently a senior executive at the Token Alliance, an initiative of the Digital Chamber of Commerce institution that is actively lobbying for the crypto industry. Fans of Bitcoin and other cryptocurrencies and tokens have a right to be happy with Atkins’ choice, as their investment in Donald trump seems to be paying off.
As Gabriel Rubin pointed out in his Breakingviews Reuters article, one investment could be “bad” as cryptocurrencies could turn $200 million into $1.2 trillion. The columnist was referring to the crypto industry’s campaign donations to Trump and the increase in the total value of a large basket of cryptocurrencies from $2.4 trillion to $3.6 trillion as Trump’s election.
rubin believes that the SEC under Atkins’ leadership will indeed be friendlier to the crypto industry and will help the emerging investment industry become even more accepted by the conventional financial industry, and he believes this will help continue on with the rally of the crypto assets. . The truth is that from the beginning of 2024 and beyond, the creation of several etfs investing in Bitcoin has brought the crypto industry much closer to the financial industry and the clients of the giants in the fund management industry, such as blackrock (BRK ). NYSE) and many others.
We must attribute much of the credit for Bitcoin’s extraordinary run to the operation of these exchange-traded funds,since the constant inflow of funds provides new fuel for the most famous currency and by extension the all crypto-assets. According to Bloomberg, year-to-date net inflows to ETFs that invest in Bitcoin totaled $32 billion, with $8 coming in after Trump’s election victory.
To this amount, which is extremely valuable, we must add the continuous purchases of bitcoin by Michael Saylor’s company MicroStrategy (MSTR NASDAQ), which is constantly buying new quantities of Bitcoin raising several billion dollars in capital increases and adding new debt. According to Bloomberg, from November 11 to December 1, the company bought $13.5 billion worth of Bitcoin. The huge increase in demand is probably the main reason why cryptocurrencies keep going up, helped of course by the good news for this industry, which definitely reduces the supply as potential sellers feel that the rise can continue for a long time.
Speaking on the other side, Matt Mena of 21Shares told Barron’s that the mood in the crypto markets is very positive and he placed the next bullish milestone at $110,000, adding that this is also reflected in market movements derivative. Mena’s goal could be achieved very quickly and easily, but ther are even more positive estimates.We read one of them in Barron’s and it comes from Geoff Kendrick of Standard Chartered. In his note, he said Bitcoin could reach as high as $200,000 by the end of 2025, mainly as institutional investors will continue to increase demand for it by buying shares of the aforementioned ETFs.
This prediction sounds a bit far-fetched but then again, the prediction of Bitcoin at 100,000 was much, much longer a few months ago. Here we must add that the demand outside the US also played an crucial role in the upward movement of cryptocurrencies. The example of South Korea is typical, where the daily value of transactions in crypto currencies is greater than the equivalent of transactions in all shares of the Seoul stock exchange, as Bloomberg informed us yesterday.
So many factors have driven Bitcoin to a six-figure dollar price,and it is indeed not at all likely that they will continue to drive higher,as excitement combined with the availability of funds is a foot that frequently enough leads to acceleration raise.
As it stands, we can’t even verify the prediction of the Standard Chart analyst, not wanting to get into the debate about the “true value” that Bitcoin and cryptocurrencies in general may have. But it is good not to forget that outflows sometimes follow capital inflows and then the meteoric rise can give way to a less pleasant “air gap”. We have no idea when that will happen, but it’s very hard to believe that it won’t happen at some point.
What are the potential impacts of Trump’s election and Paul Atkins’ SEC appointment on the cryptocurrency market?
Interview between Time.news Editor (TNE) and Cryptocurrency expert (CE)
TNE: Welcome to Time.news! Today, we’re diving into the recent surge in cryptocurrency prices, especially Bitcoin, which many are excited to see hitting that coveted $100,000 mark. Joining me is our cryptocurrency expert, who has been following this trend closely. Thank you for being here!
CE: Thank you for having me! It’s an exciting time in the crypto world, that’s for sure.
TNE: Absolutely! So, let’s jump right in. There’s been a lot of chatter linking this surge directly to Trump’s election and the appointment of Paul Atkins to the SEC. How important is this connection in your opinion?
CE: It’s quite significant. Under Trump’s influence, there’s a clear shift towards a more favorable regulatory environment for cryptocurrencies. By appointing Paul Atkins,a known advocate for less stringent regulations,it sends a reassuring message to the market that the new administration may not crack down on crypto like previous ones did.
TNE: Many crypto enthusiasts have expressed their excitement about Atkins’ appointment.Can you share why his background might be appealing to investors?
CE: Certainly! Atkins served on the SEC from 2002 to 2008, and during that time, he showed a preference for more flexible oversight rather of strict enforcement. He currently leads initiatives like the Token Alliance, which aims to promote the interests of the crypto sector. This signals to investors that there could be a more nurturing environment for blockchain innovation, which can ultimately drive prices up.
TNE: It’s interesting to see the interplay between politics and the crypto market. You mentioned that the crypto industry backed Trump’s campaign with significant funds. Do you believe this financial support is influencing his policies on cryptocurrency?
CE: I think it’s hard to deny that it plays a role. With over $200 million of campaign contributions from crypto players, it’s reasonable to assume that there’s an expectation for favorable treatment. This sort of financial backing typically encourages a government to consider the interests of its backers,especially when transitioning power.
TNE: So, are you saying we might see continued growth in the cryptocurrency market as we move forward?
CE: It certainly looks that way. As more institutional support pours in—fueled by a regulatory environment that’s perceived as friendly—investors will likely feel more confident. Add to that the potential for mainstream adoption and the narrative of Bitcoin possibly reaching $100,000, and you’ve got a recipe for further growth.
TNE: There’s a lot of talk in the market about Bitcoin potentially reaching or exceeding $100,000 soon. How realistic is that prediction in your view?
CE: The prediction is definitely within reason. Analysts and enthusiasts alike have pointed out that certain economic indicators and market conditions are aligning. If we look at past patterns and the current narrative surrounding crypto, hitting $100,000 might not just be a pipe dream; it could be a reality sooner rather than later.
TNE: That’s an exciting prospect! But what should potential investors keep in mind during this volatile period?
CE: the most important thing is to do your research and remain cautious. the crypto market can be incredibly unpredictable. Be mindful of market trends, understand what drives price changes, and never invest more than you can afford to lose. Diversification is essential as well; don’t put all your eggs in one basket.
TNE: Great advice! One last question: What are you most looking forward to in the coming months regarding cryptocurrency?
CE: I’m excited to see how the regulatory landscape unfolds under the new administration.It could set the stage for a major evolution in how cryptocurrencies are perceived and adopted in mainstream finance. Plus, I’m eager to see how technological advancements in the blockchain space continue to shape our economy.
TNE: Thank you so much for your insights today! It’s always a pleasure to discuss such a dynamic and transformative field.
CE: Thank you! I enjoyed our conversation and am looking forward to following these developments closely.
TNE: And to our readers,we hope you found this interview enlightening as we continue to navigate the ever-changing world of cryptocurrency!