Share this article
Crypto Markets Have Benefited From a Positive Environment Since U.S. Election: Citi
The nomination of crypto-friendly Paul Atkins as chair of the SEC provided the final boost that propelled bitcoin through the $100,000 level, the report said.
Dec 6, 2024, 8:47 a.m.
What to know:
- Crypto markets have benefited from a positive backdrop following Donald Trump's election victory in the U.S., the report said.
- Citi said Paul Atkins' nomination as SEC chair delivered the final boost that took bitcoin to a record high over $100,000.
- Other digital assets will likely have more to gain from a more tolerant regulatory environment, the bank said.
Bitcoin (BTC) reached an all-time high above $100,000 earlier this week as a number of tailwinds fueled a post-U.S.-election rally in the world's largest cryptocurrency, Citi (C) said in a research report on Thursday.
"The nomination of digital asset-friendly Paul Atkins to chair the SEC provided the final boost," that saw bitcoin break through $100,000 to record highs, analysts led by Alex Saunders wrote.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The cryptocurrency was trading around $98,500 at the time of publication.
Bitcoin continues to be bolstered by exchange-traded fund (ETF) flows and other buying as adoption grows, the bank noted.
The macro environment is also constructive for digital assets. Loose financial conditions and resilient growth are positive for crypto tokens, Citi said.
Advertisement
"Other digital assets likely have more to gain from a more permissive regulatory environment," the authors wrote, noting that bitcoin's dominance has fallen.
Citi said it hasn't seen a notable rise in on-chain activity.
Over the longer term, the bank said a network's utility or value will be linked to its usage, macro correlations and production costs.
A new, more benign regulatory system could unlock more and wider use cases for blockchain assets, the report added.
More permissive crypto policies should broaden the asset class, Citi said, but bitcoin, which has already been classified as a commodity, and has both a spot ETF and a futures contract, has less to gain than other tokens.
Read more: Bitcoin Crashed Below $94K in Sudden Plunge From record Perch Around $100K
More For You
More For You
Bitcoin Jumps to $99K as Spiking Coinbase Premium Points to Strong U.S. Buying
Spot BTC prices were at times $300 pricier on Coinbase relative to Binance, suggesting the rally may be driven by heavy demand from American investors.
What to know:
- Bitcoin surged towards $100,000 on Wednesday's U.S. trading session, gaining 3.2% in the past 24 hours.
- The rally coincided with significant spot BTC price premium on Coinbase.
- Fed Chair Jerome Powell called bitcoin a competitor to gold during a panel discussion.
Top Stories
