Bitcoin prices made a new record on December 5, 2024, when it crossed the milestone of $100,000 for the first time and reached $103,800. The boost came right after Donald Trump, an ardent supporter of cryptocurrency, nominated Paul Atkins, a declared crypto supporter, to head the securities market regulator US Securities and Exchange Commission in his regime. Trump also vowed to remove any regulatory hurdle on the path of cryptocurrency and said he would turn the US the crypto superpower on this planet.
Though profit taking brought down the price of Bitcoin from the dizzying heights in the subsequent days, the prices are back to above the $100,000 level. On December 13, Bitcoin prices closed at $1,01,719.60 making a gain of $264.90 (or 0.26%) during the day.
US Fed rate cut hopes
Reports said that investors pumped up Bitcoin prices in the hope of US Federal Reserve, or US Fed, could soon trim interest rates. The hopes were fuelled by recent favourable US inflation data. The data were aligned to market expectations and experts hoped that the US Fed would cut key interest rates next week.
Significantly, Donald Trump, a career businessman, is not only known to back crypto assets, but also known to be in favour of lower interest rates. Major financial services group Fidelity believed that lower interest rates can, in turn, boost liquidity for assets like cryptocurrency. Going by past price data, Bitcoin prices zoomed about 70% to reach the peak in early December compared to its levels before the US presidential elections on November 5, 2024.
Bitcoin ETF, a significant milestone
Significantly, this year has been crucial for Bitcoin. On January 10, 2024 SEC (Securities and Exchange Commission) approved spot Bitcoin exchange-traded funds, or ETFs, which was described as a significant point in the asset’s history. Brett Tejpaul, the head of Coinbase Institutional, remarked at an event in New York, “This is the moment that crypto’s gone mainstream.”
Bitcoin, which is the world’s most popular cryptocurrency, received a shot in the arm when Republic Candidate Donald Trump won the US presidential elections, following which he vowed to make his country the crypto superpower of the world. Biz News Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
