Bitcoin $98,402.6reached its all-time high, surpassing the $100,000 level earlier this week. According to a report prepared by Citi, the positive environment following the US elections and regulatory developments were the main factors supporting this increase.
SEC Chairman Nominee and Market Confidence
In the report published by Citi on Thursday, it was stated that the appointment of digital asset friend Paul Atkins as head of the US Securities and Exchange Commission (SEC) was decisive in the rise of Bitcoin. “The appointment of Paul Atkins was the final impetus for Bitcoin to surpass $100,000,” stated analysts led by Alex Saunders. This step supported the overall positive sentiment by increasing regulatory confidence in the cryptocurrency market.
Bitcoin’s rise has also been fueled by ETF (Exchange Traded Fund) flows and interest from individual investors. According to the report, the increase in adoption of crypto assets is having a positive impact on market growth. In addition, loose financial conditions and resilient economic growth were among the macroeconomic factors supporting the appreciation of digital assets.
Regulatory Environment May Support Other Entities
In its report, Citi stated that Bitcoin’s market dominance has decreased and other digital assets may gain more advantages. “A more permissive regulatory environment could support the growth of other digital assets,” analysts commented. However, it was stated that Bitcoin could gain limited profit from this environment because it is classified as a commodity and has a spot ETF.
It was emphasized that in the long term, the use of blockchain technology will be further shaped by economic factors and regulatory systems. “More favorable regulatory systems could create broader applications for blockchain assets,” the report said. However, Citi pointed out that no significant increase in activities on the chain was observed.
Bitcoin’s historical peak marks the beginning of a new era in the cryptocurrency market. However, the impact of regulatory policies on the future of the sector will continue to be discussed.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
