Bitcoin surpassed the $100,000 mark earlier this week, reaching an all-time high. A report by Citi indicates that the positive environment following the U.S. elections and regulatory developments were key factors supporting this increase.
SEC Chair Nominee and Market Confidence
Regulatory Environment May Support Other Assets
SEC Chair Nominee and Market Confidence
Citi’s report published on Thursday highlighted that the appointment of digital asset-friendly Paul Atkins as the U.S. Securities and Exchange Commission (SEC) chair had a decisive impact on Bitcoin’s rise. Analysts led by Alex Saunders stated, “The appointment of Paul Atkins was the final push for Bitcoin to surpass $100,000.” This move has bolstered market confidence in the cryptocurrency sector, fostering an overall positive atmosphere.
The rise of Bitcoin has also been fueled by ETF (Exchange-Traded Fund) inflows and interest from individual investors. According to the report, the increase in the adoption of crypto assets is positively influencing market growth. Additionally, loose financial conditions and resilient economic growth have emerged as macroeconomic factors supporting the appreciation of digital assets.
Regulatory Environment May Support Other Assets
Citi noted in its report that Bitcoin has experienced a decline in market dominance, which may allow other digital assets to gain more advantage. Analysts commented, “A more permissive regulatory environment could support the growth of other digital assets.” However, it was noted that Bitcoin might gain limited benefits from this environment due to its classification as a commodity and its possession of a spot ETF.
In the long term, the use of blockchain technology is expected to be further shaped by economic factors and regulatory systems. The report stated, “More favorable regulatory frameworks could create broader applications for blockchain assets.” However, Citi pointed out that no significant increase in on-chain activities has been observed.
Bitcoin’s historical peak signals the beginning of a new era in the cryptocurrency market. However, the impact of regulatory policies on the industry’s future will remain a topic of ongoing discussion.
You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap
Disclaimer:
The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.