Crypto stocks surged on Thursday after Bitcoin soared to a record high of over $100,000, fueled by president-elect Donald Trump’s announcement to nominate Paul Atkins, a crypto-friendly figure, to lead the SEC. Notable gains were seen in major stocks: Coinbase rose by 5%, MicroStrategy by over 8%, and Riot Platforms by more than 6%. Under Atkins, the SEC is expected to adopt a more innovation-friendly approach to cryptocurrency regulations, contrasting with the more rigorous enforcement under Gary Gensler. As investors celebrate this shift, caution is advised, as Market dynamics could lead to selling pressures at this new price level for Bitcoin.
Crypto Stocks Surge as Bitcoin Surpasses $100,000 Following SEC Appointment of Paul Atkins
Crypto stocks experienced a significant rally on Thursday, driven by Bitcoin hitting a record high of over $100,000. This surge comes after President-elect Donald Trump announced his intention to nominate Paul Atkins, a known supporter of the cryptocurrency sector, to lead the Securities and Exchange Commission (SEC).
Coinbase, a major player in the crypto Market, saw its stock rise by as much as 5%, marking an impressive 90% increase since the beginning of 2024. Meanwhile, MicroStrategy, which is the largest corporate investor in Bitcoin with the cryptocurrency as its main Treasury asset, saw an 8% bump in its stock. Bitcoin mining company Riot Platforms also benefited, witnessing more than a 6% increase in share prices.
According to a report by Yahoo Finance’s David Hollerith, Atkins is expected to promote regulations that encourage innovation in the crypto space rather than impose restrictive oversight. He will replace Gary Gensler, who has been known for leading a crackdown on several crypto-related activities, including prosecutions related to high-profile firms like FTX and Coinbase.
Bitcoin was trading at approximately $103,500 early Thursday, drawing attention from both investors and analysts. However, Oppenheimer’s senior analyst Owen Lau warned investors to tread carefully at this new milestone. He suggested there might be selling pressures as traders look for the next breakout level.
The crypto sector views Trump’s presidency as a generally positive development, especially with efforts to fill the cabinet with individuals supportive of cryptocurrency. Additionally, Trump’s team is reportedly considering establishing a new role of “crypto czar” to oversee national bitcoin policy.
As the crypto landscape shifts with the upcoming administration, many are watching closely to see how these changes will impact both the Market and regulatory environment for cryptocurrencies in the future.
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What is causing the surge in crypto stocks?
The surge in crypto stocks is mainly due to Bitcoin reaching over $100,000. People are excited about this milestone, which boosts interest in cryptocurrency.
Who is Trump’s SEC pick?
Trump’s SEC pick is Gary Gensler, a former professor and expert on cryptocurrencies. His appointment has made investors hopeful about more support for the crypto Market.
Why does Bitcoin hitting $100,000 matter?
Hitting $100,000 is a big deal because it shows that Bitcoin is becoming more valuable and accepted in the financial world. It can attract more investors to crypto.
Will this trend continue?
It’s hard to predict the future, but many investors are optimistic. If Bitcoin stays strong, it could lead to more gains in crypto stocks.
Should I invest in crypto now?
Investing in crypto can be risky. It’s important to do your research and consider your financial situation before making any decisions.
