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3. Bitcoin Nears $100K: Will Trump Boost Crypto?

Bitcoin and other cryptocurrencies are hitting record highs, driven by investor confidence in the future of digital assets under President-elect Donald Trump.

On Thursday, Bitcoin surged past $98,000, raising its market capitalization to $1.9 trillion. This rally reflects expectations of robust legislative and executive support for the crypto sector, bolstered by Republican victories in the White House and Congress.

The cryptocurrency market, including “meme coins” like Dogecoin, continues to surge following Donald Trump’s victory in the US presidential election. Crypto investors view the outcome as a breakthrough for the sector, anticipating a supportive regulatory landscape under the new administration. 

The cryptocurrency markets, with Bitcoin leading the charge, received a boost from reports that the “Trump Media Group” is in talks to acquire the digital asset platform “Bakkt.” Additionally, the launch of Bitcoin options trading on the global stock exchange “Nasdaq” this week has further fueled the sector's growth. “BlackRock's iShares Bitcoin Trust” raised nearly $2 billion in just hours after its debut. While 11 Bitcoin exchange-traded funds (ETFs) exist in the US, the iShares Bitcoin Trust is the only one listed on Nasdaq, making it the sole ETF available for options trading. Official data reveals that Bitcoin investment funds in the US have surpassed $100 billion in assets for the first time, driven by significant inflows, including $773 million this week. Since the November 5 elections, these funds have attracted a net $5.8 billion, marking one of the most successful ETF launches to date.

All eyes are on the imminent transition of power in the United States, as President-elect Donald Trump prepares to enter the White House and fulfill the promises he made during his electoral campaign. Among these is the creation of a strategic Bitcoin reserve, funded by cryptocurrencies seized by authorities in legal cases. At the same time, speculation is growing over the possibility of Trump nominating Judy Lynn Shelton, a lawyer with expertise in cryptocurrencies and a former commissioner at the Securities and Exchange Commission (SEC), to head the regulatory body during his second term.

Markets are eagerly awaiting whether Trump will follow through on his campaign pledge to remove Gary Gensler, the current SEC Chair, who has launched a tough crackdown on the crypto industry during President Biden’s administration. In a move that underscores the growing importance of the sector within the new administration, Trump’s team has been holding a series of meetings to discuss the future of digital and encrypted assets and whether it’s necessary to establish a new White House position to oversee and regulate cryptocurrencies.

For days, Trump’s team has been reviewing the credentials of several potential candidates for this role, which, if created, would be the first-ever White House position dedicated to cryptocurrencies. Supporters of the crypto industry insist that whoever is appointed must have direct, ongoing communication with the new president. Ultimately, the decision rests with Trump, who will determine whether to establish this new position in the White House. The person appointed will carry the title “Crypto Czar,” a term used in Washington to refer to the individual responsible for overseeing policy and regulation across the federal government.