Bitcoin surged past $107,000 in early Wednesday trading following the US Securities and Exchange Commission (SEC) unveiling plans to revamp cryptocurrency regulations. The cryptocurrency rose by 4%, currently trading at $105,585, after hitting a peak of $107,180 earlier in the day. Meanwhile, Ethereum, the second-largest cryptocurrency, increased by 2.8%, reaching $3,322.
The Trump administration has taken a major step to address cryptocurrency policy with the establishment of a new task group by the SEC tasked with developing a regulatory framework for digital assets. Despite the fact that the subject was not covered in his first executive acts, this endeavour increases investor confidence in the administration’s strategy.
Bitcoin reached a record high of $109,071 on Monday during President Trump’s inauguration. However, the cryptocurrency retracts after Trump’s executive orders do not mention crypto policy.
Since Trump’s election in November, Bitcoin has increased by nearly 60%, surpassing $100,000 for the first time in early December. Other cryptocurrencies see substantial gains as well, with XRP rising by 4%, Solana by 10%, and Dogecoin by 8.9%. Chainlink rises by 9%, and other notable coins like Avalanche, Sui, Toncoin, and Shiba Inu also experience price increases.
Newly launched tokens linked to Trump, such as OFFICIAL TRUMP and Melania Coin, show mixed performance. OFFICIAL TRUMP jumps by 29% in 24 hours, while Melania Coin increases by 2%, despite past significant declines.
Bitcoin’s market capitalization reaches $2.092 trillion, holding a 57.55% dominance, according to CoinMarketCap. However, Bitcoin’s trading volume drops by 37.67% to $76.4 billion.
Since its introduction in 2008 by the unknown Satoshi Nakamoto, cryptocurrencies—especially Bitcoin—have been at the forefront of the financial industry. Bitcoin is criticised for enabling untraceable payments and encouraging illicit activity, despite its claims of a decentralised financial system.
