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Bitcoin climbs above 100,000 US Dollars

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On Thursday night, Bitcoin exceeded the USD 100,000 mark for the first time. The reason probably comes from an announcement by future US President Trump.

Possible New SEC Chairman drives the Bitcoin Price

After consolidating just below the USD 100,000 mark since mid-November, the price of Bitcoin broke through this mark for the first time on the night of 12 December, reaching a new record high of USD 104,000. There are many reasons for this. The most important, however, is likely to be Donald Trump's decision to name crypto proponent Paul Atkins as his preferred candidate for the chairmanship of the US Securities and Exchange Commission (SEC). Should this actually be realised, ETFs for further cryptocurrencies could be approved as a result. So far, these are limited to Bitcoin and Ethereum. It remains to be seen whether a broad offering will attract additional capital or whether the capital accumulated to date will be further dispersed. Overall, however, it would be positive for the broader acceptance of cryptocurrencies.

The planned establishment of a position in the White House to deal specifically with policy relating to digital currencies was also received positively by the crypto community. There is also the possibility that the USA could create a state reserve in Bitcoin under Trump. So far, it is unclear what funds will be used to create this reserve. Some speculate that it will consist of Bitcoin confiscated from criminals, which could have a rather minor impact on the price. However, there are also proposals to buy a total of 1 million Bitcoins over a period of several years. This would be almost 5% of the limited amount of 21 million Bitcoin. Such a move could have a more significant impact on the price of Bitcoin. And not only after the purchase is completed, but already after the announcement.

What's next for Bitcoin?

After reaching a new record high of USD 104,000, the price initially fell by almost USD 3,000. This was probably primarily due to profit-taking, although this was very limited. The price is currently hovering between USD 102,000 and USD 103,000. If it remains above the 100K mark until the upcoming weekend, this could be interpreted as a signal for further upward potential in the short term. If it falls below this mark, initial resistance in the USD 95,000 range is to be expected. However, it is likely that the price will consolidate in the current range until the next news, positive or negative, influences the further direction of the price.

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