Nov 28 2024: Bitcoin extended its rebound on Thursday, climbing closer to the $100,000 milestone, buoyed by expectations of crypto-friendly regulations under Donald Trump’s incoming administration. After briefly stalling below the coveted level last week due to profit-taking, Bitcoin has surged over 100% year-to-date.
By 00:31 ET (05:31 GMT), Bitcoin was up 3.1% to $95,645.
Shift to CFTC Oversight Offers Relief to Crypto Market
Fox Business reported that Trump plans to transfer primary crypto regulatory oversight from the SEC to the Commodity Futures Trading Commission (CFTC). The CFTC, which oversees U.S. derivatives markets, is perceived as less stringent than the SEC.
The shift comes after years of aggressive SEC enforcement, which dented investor confidence and triggered major selloffs in cryptocurrencies since 2022. This development also boosted XRP, which surged 7% as Ripple’s long-standing legal battle with the SEC gained renewed optimism.
Pro-Crypto Leadership Expected Under Trump Administration
Reports indicate that Trump is considering Paul Atkins, a digital asset advocate, as a potential successor to SEC Chair Gary Gensler, who plans to resign. Atkins is expected to adopt a more lenient regulatory approach compared to Gensler, who faced criticism for enforcing strict crypto regulations.
Additionally, Trump’s choices for Treasury Secretary and Commerce Secretary reportedly share pro-crypto views, signaling broader institutional support for digital assets.
Skepticism Over Trump’s Bitcoin Reserve Proposal
Despite optimism surrounding Trump’s regulatory direction, Compass Point Research voiced doubts about the feasibility of his proposed Bitcoin strategic reserve. Analysts argue that the Treasury is unlikely to back deficit-driven funding to buy Bitcoin, and a slim Republican majority in Congress would likely oppose such measures.
Compass Point also dismissed the BITCOIN Act, proposed by Senator Cynthia Lummis, as politically unviable.
Altcoins Rally Alongside Bitcoin
The broader cryptocurrency market followed Bitcoin’s upward momentum:
- Ether: Up 5.1% to $3,572.13.
- Solana: Rose 4.2%.
- Cardano: Gained 5.2%.
- Polygon: Added 4%.
- Dogecoin: Increased by 4.3%.
The market’s rally underscores growing investor optimism over a potential regulatory shift favoring digital assets.
