Bitcoin (BTC) jumped beyond $99,000 on Thursday, setting a new milestone before easing slightly. The milestone comes on the heels of substantial political and market events that have increased investor trust in digital assets.
Rumors of Securities and Exchange Commission (SEC) Chair Gary Gensler’s departure, as well as Donald Trump’s prospective crypto-friendly policies, have fueled the crypto space’s excitement.
Inspired by hope for a possible change in US financial policy, Bitcoin surged to $99,126 from a dismal beginning of the session. Investors still think $100,000 is in the cards particularly considering the rise in cryptocurrencies approximately 40% following Trump’s anticipated re-election win earlier this month.
Reports show that the government of Trump is considering the creation of the first crypto policy job, which may turn around how regulations are taken. Many think that the SEC will become more open-minded after Gensler leaves, which has been a bone of contention for long among the crypto community.
On January 20, 2025 I will be stepping down as @SECGov Chair.
A thread
— Gary Gensler (@GaryGensler) November 21, 2024
Galaxy Digital’s CEO, Mike Novogratz, expressed hope about this change, noting that the Trump team’s energy is very different, that they are pro-crypto, pro-blockchain, and sees the promise Bitcoin brings. He claimed the government’s desire in building a national Bitcoin stockpile and giving blockchain innovation top priority will help to empower the market even more.
The Financial Times has reported that Trump Media & Technology Group (DJT) is in talks to acquire Bakkt, a cryptocurrency exchange. This possible collaboration might bring cryptocurrency into a larger technological framework, making it more accessible and widespread.
Such developments add to the larger story of institutional adoption, which was a crucial driver in prior bull cycles. The market’s reaction shows a rising view that Bitcoin is prepared to play a larger role in both the private and public sectors under favorable regulations.
#Bitcoin looks like it did in December 2020. Even the RSI is nearly identical. If true, $BTC will go to $108,000, drop to $99,000, and bounce to $135,000! pic.twitter.com/hsIBWBVGnl
— Ali (@ali_charts) November 20, 2024
Analysts Predict New Highs
Meanwhile, crypto expert Ali Martinez said the current rise of Bitcoin has strong similarities with its rise in late 2020. Research from this analyst postulates that Bitcoin will increase up to $108,000 before dropping down to $99,000 and then increase to $135,000.
Important data including daily active addresses—which topped 475K—and higher social volumes of 380K support this projection. These trends mirror the 2020 breakout when Bitcoin more than doubled within a few weeks.
Following Gensler’s resignation, Bitcoin’s course may be determined by the position taken by his successor. A pro-crypto leader may encourage uptake and propel Bitcoin above $100,000, paving the way for a prolonged bull run. However, changes in regulations and market attitude will be important factors.
Featured image from DALL-E, chart from TradingView
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