Bitcoin back above $100,000 as inflation dies down
The world’s first cryptocurrency Bitcoin (BTC) regained $100,000 as inflation concerns die down.
At the time of writing, Bitcoin is changing hands at just under $105,000 after seeing its price increase by about 5.7% over the last 24 hours and 12.25% over the last seven days. The resurgence in BTC prices comes amid an easing in inflation concerns. Min Jung, research analyst at Presto Research, wrote in a recent note to investors:
“The market rally was largely driven by lower-than-expected [consumer price index] CPI data, which temporarily eased inflation concerns.”
Core CPI data excluding food and energy stood at 3.2% in December, down from 3.3% in November. Jung added:
“Additionally, Trump-related headlines played a significant role, including his plans to designate cryptocurrency as a ‘national priority’ and his openness to exploring a reserve backed by U.S.-founded cryptocurrencies.”
Crypto a “national priority”United States President-elect Donald Trump plans to issue an executive order that cements cryptocurrency as a national policy priority for the United States, according to a recent Bloomberg report. The order reportedly prioritizes enhancing government collaboration with the cryptocurrency industry.
With the order, Trump would set up a crypto advisory council to give top crypto industry players representation in his administration. Senior director of government relations at the Blockchain Association Ron Hammond said in an interview with industry news outlet The Block that such a council would consist of crypto executives and that firms would select their council representatives.
Other Trump’s pro-crypto policies include creating a United States strategic Bitcoin reserve — an idea that attracted its fair share of criticism. The upcoming administration is also expected to ease the crypto-bank relations.
Many crypto professionals in the United States claim that traditional financial institutions and regulators have discriminated against them since the industry’s inception. In mid-November, his sentiment led Republican state attorney generals and the DeFi Education Fund to sue the United States Securities and Exchange Commission (SEC) and its five commissioners.
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