Bitcoin (BTC-USD) rebounded to $98,000 and neared record highs, following the announcement that Securities and Exchange Commission (SEC) Chairman Gary Gensler will step down on January 20. This key development coincides with increased optimism about potential pro-crypto policies under the incoming US administration, creating a bullish environment for digital assets.
The cryptocurrency hit a high of $98,300 in early trade before retreating slightly. Investors remain optimistic about potential regulatory changes that could benefit the crypto sector, with market sentiment further boosted by the prospect of a more crypto-friendly SEC under new leadership.
Pro-Crypto Policies Drive Bitcoin Surge
Bitcoin has soared over 40% since the November 5 US presidential election, as investors anticipate a wave of crypto-positive policies under President-elect Donald Trump. These include discussions around establishing a national bitcoin repository and replacing SEC leadership to promote a more supportive regulatory framework for digital assets.
Reports from insiders in the transition suggest a focus on creating the first-ever federal crypto policy role, fueling optimism across the cryptocurrency market. This momentum has brought Bitcoin closer to the long-awaited $100,000 milestone.
Industry leaders see bright future for Bitcoin
Mike Novogratz, CEO of Galaxy Digital (TSX:GLXY), expressed confidence in the incoming administration’s approach to digital assets. Speaking to Yahoo Finance, Novogratz highlighted the stark contrast between the Trump administration’s pro-crypto stance and the outgoing regulatory environment.
“All the guys around the table believe in the digital asset world, in blockchain and bitcoin. The energy of this administration is going to be so different from the Gary Gensler era,” Novogratz said.
Galaxy Digital’s positive outlook reflects broader market sentiment, as institutional players position themselves for potential regulatory changes that could unlock further growth in the cryptocurrency space.
Crypto adoption is gaining momentum
The growing interest in Bitcoin has coincided with significant developments in the broader crypto ecosystem. A Financial Times report revealed that Trump Media & Technology Group is in advanced talks to acquire Bakkt (NYSE:BKKT), a crypto trading platform. This acquisition could signal a bigger push to integrate cryptocurrency into mainstream finance and technology.
Additionally, spotbitcoin ETFs have experienced record inflows. BlackRock’s (NASDAQ:BLK) iShares Bitcoin Trust (IBIT) saw assets increase by $13 billion following Trump’s presidential victory, pushing its total assets over $40 billion less than a year after launch.
The rapid introduction of bitcoin-linked financial products is attracting increased trading activity, with options linked to IBIT starting trading on Nasdaq this week.
Bitcoin Market Outlook
The combination of regulatory optimism, institutional adoption and increasing inflows into bitcoin-linked ETFs has created a strong bullish narrative for Bitcoin. As investors eye the $100,000 milestone, attention remains focused on how the incoming administration’s policies will shape the trajectory of the crypto market.
While risks remain, particularly around potential global regulatory crackdowns or macroeconomic headwinds, the current environment positions Bitcoin as a key player in the future of finance.
Bitcoin’s recent surge underscores growing confidence in its role as a hedge against inflation and a critical component of modern investment portfolios.
Featured image: Freepik
