12 hours Ago By Associated Press
NEW YORK — Bitcoin topped $98,000 for the first time Thursday, extending a blistering post-presidential election rally. The cryptocurrency has rocketed more than 40% in just two weeks. Bitcoin now sits at the doorstep of $100,000 just two years after dropping below $17,000 following the collapse of crypto exchange FTX.
The recent, dramatic rally arrives as industry players expect the incoming Trump administration to bring a more “crypto-friendly” approach toward regulating the digital currency. Bitcoin traded as high as $98,349 early Thursday, according to CoinDesk. It was at $98,024 around 4:30 p.
m. As with everything in the volatile cryptoverse, the future is impossible to know. And while some are bullish, other experts continue to warn of investment risks.
Bitcoin is the largest and oldest cryptocurrency, although other assets like ethereum, tether and dogecoin have also gained popularity over the years. Some investors see cryptocurrency as a “digital alternative” to traditional money — but it can be very volatile, with its price reliant on larger market conditions. Much of the recent spike in the price of bitcoin has to do with the outcome of the U.
S. presidential election. Crypto industry players have welcomed Trump’s victory, in hopes that he would be able to push through legislative and regulatory changes that they’ve long lobbied for — which, generally speaking, aim for an increased sense of legitimacy without too much red tape.
“This is not necessarily a short-term story, it’s likely a much longer-term story,” Citi macro strategist David Glass said last week. “And there is the question of how quickly can U.S.
crypto policy make a serious impact on (wider adoption).” Adam Morgan McCarthy, a research analyst at Kaiko, thinks the industry is craving “just some sort of clarity.” Much of the approach to regulating crypto in the past has been “enforcement based,” he notes, which has been helpful in weeding out some bad actors — but legislation might fill in other key gaps.
Gary Gensler, who as head of the Securities and Exchange Commission under President Joe Biden has led a U.S. government’s crackdown on the crypto industry, penalized a number of crypto companies for violating securities laws.
Gensler announced Thursday that he would step down as SEC chair on Jan. 20, Inauguration Day. That announcement boosted bitcoin’s price in Thursday trading.
Despite crypto’s recent excitement around Trump, McCarthy said that 2024 has already been a “hugely consequential year for regulation in the U.S.” — pointing to January’s approval of spot bitcoin ETFs, for example, which mark a new way to invest in the asset.
Spot ETFs have been the dominant driver of bitcoin for some time now — but, like much of the crypto’s recent momentum, saw record inflows postelection. According to Kaiko, bitcoin ETFs recorded $6 billion in trade volume for the week of the election alone. U.
S. stocks also climbed Thursday after market superstar Nvidia and another round of companies said they’re making even fatter profits than expected. The S&P 500 pulled 0.
5% higher after flipping between gains and losses several times during the day. The Dow Jones Industrial Average jumped 461 points, or 1.1%, and the Nasdaq composite edged up by less than 0.
1%..
