Crypto stocks experienced a brief surge on Thursday, driven by Bitcoin’s rise to over $100,000. This boost followed President-elect Donald Trump’s announcement of Paul Atkins, a pro-cryptocurrency advocate, as his nominee to lead the SEC. Notable stocks like Coinbase and MicroStrategy saw early gains, with Coinbase up more than 90% since the start of 2024. However, many stocks reversed their gains later. Investors are advised to approach Bitcoin cautiously as it nears record highs. Trump’s election is generally viewed positively for the crypto Market, with discussions about appointing a “crypto czar” to oversee Bitcoin policies underway.
Crypto stocks saw a brief surge early Thursday morning after Bitcoin broke through the impressive milestone of $100,000, hitting a record high of $103,500. This exciting rise was partly fueled by President-elect Donald Trump’s announcement that he would appoint Paul Atkins, a well-known pro-crypto figure, to lead the U.S. Securities and Exchange Commission (SEC). Following this news, Coinbase stock increased by up to 5%, reflecting the broader optimism in the Market, and it’s notable that Coinbase shares have jumped over 90% since the beginning of 2024.
Other companies in the crypto sphere also experienced fluctuations. MicroStrategy, renowned for being the largest corporate holder of Bitcoin, saw its shares rise more than 8% before dipping. Similarly, Bitcoin miner Riot Platforms had an initial increase of over 6%. By late morning, MicroStrategy’s stock was down 2%, while Riot Platforms had a more modest decline of 0.3%.
Atkins’ nomination as SEC chair is significant because he advocates for cryptocurrency regulations that encourage innovation rather than stifle it. He is expected to replace Gary Gensler, who has been recognized for his strict stance on the industry. Gensler’s SEC was known for investigating various crypto-related frauds and for taking action against major players in the Market, including FTX and Coinbase.
Despite the promising developments, experts are advising caution. Oppenheimer’s Owen Lau warned that investors should be careful as Bitcoin approaches the $100,000 mark, anticipating potential selling pressures. Additionally, Trump’s victory is viewed positively in the crypto community, with many believing it could foster a more favorable regulatory environment.
Alongside Atkins, many members of Trump’s team are also considered pro-crypto, indicating a new direction for U.S. cryptocurrency policy. There are even talks about creating a “crypto czar” to oversee Bitcoin regulation.
In this dynamic environment, investors are watching closely as the crypto landscape continues to evolve.
Tags: Bitcoin, Cryptocurrency, Crypto Stocks, SEC, Paul Atkins, Donald Trump, Coinbase, MicroStrategy, Riot Platforms, Crypto Regulations
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Why have crypto stocks surged recently?
Crypto stocks have gone up because Bitcoin has crossed the $100,000 mark. This increase in Bitcoin often boosts investor interest in related companies and stocks. -
Who is Trump’s SEC pick and why does it matter?
Trump’s SEC pick is important because this person will help regulate the stock Market and cryptocurrencies. If they are seen as friendly to crypto, it can make investors more confident. -
What happens when Bitcoin prices rise?
When Bitcoin prices rise, it generally makes crypto-related stocks more valuable. Many people buy these stocks hoping to profit from Bitcoin’s success. -
Will this surge in crypto stocks last?
It’s hard to say. Stock markets can be unpredictable, and prices can change quickly based on news and events in the crypto world. - Should I invest in crypto stocks now?
Before investing, it’s wise to do thorough research and consider your financial goals. What works for one person may not be right for another.
