Bitcoin, the world’s largest cryptocurrency by market value, surpassed the $107,000 mark in early trading on Wednesday after the US Securities and Exchange Commission (SEC) announced its plans to revamp cryptocurrency regulations.
Bitcoin was trading 4% higher at $105,585, having reached a day’s high of $107,180. Ethereum, the second-largest cryptocurrency, increased by 2.8% to $3,322.
On Tuesday, the SEC’s new leadership unveiled the formation of a task force dedicated to creating a regulatory framework for digital assets, marking the Trump administration’s first significant move to address cryptocurrency policy.
“Following a brief dip, Bitcoin climbed over 4% as the SEC launched the ‘Crypto Task Force’ to devise a framework for digital assets. This initiative bolstered investor confidence in the Trump administration’s approach to crypto, despite the topic not being addressed during the inauguration,” said Edul Patel, CEO of Mudrex.
Patel highlighted, “With Commissioner Hester Peirce, known for her pro-crypto stance, leading the task force, we can anticipate the development of a progressive regulatory framework.”
Trump’s day-one executive action silent on crypto
Notably, Bitcoin hit an all-time high of $109,071 on Monday during President Trump’s inauguration, who has vowed to be a “crypto president.” However, the cryptocurrency retreated after failing to mention crypto in a series of executive orders on the first day.
- Bitcoin has skyrocketed nearly 60% in value since Trump’s presidential election victory in early November, surpassing $100,000 for the first time in early December.
- On Wednesday, major altcoins experienced substantial gains. XRP rose by 4%, Solana increased by 10%, and Dogecoin jumped by 8.9%. Other notable movements included Chainlink’s 9% surge and significant gains from Avalanche (6.5%), Sui (9.3%), Toncoin (5.6%), and Shiba Inu (6.3%).
Recently launched tokens like OFFICIAL TRUMP and Melania Coin displayed mixed performance, with OFFICIAL TRUMP soaring 29% and Melania Coin rising 2% in the past 24 hours, despite previous declines of 42% and 70% respectively.
What you should know
Within the last 24 hours, Bitcoin’s market capitalization rose to $2.092 trillion, maintaining a dominance of 57.55%, according to CoinMarketCap.
- However, BTC trading volume fell 37.67% to $76.4 billion.
- Cryptocurrencies have dominated headlines since their inception, characterized by extreme volatility and the collapse of major industry players, notably the FTX exchange platform.
- Bitcoin, introduced in 2008 by an anonymous entity known as Satoshi Nakamoto, was envisioned as a decentralized financial platform independent of mainstream institutions.
Despite its revolutionary potential, Bitcoin has faced criticism for facilitating untraceable payments on the dark web and enabling money laundering and ransomware activities.
