Bitcoin soars past $100K as Trump nominates pro-crypto Atkin as next SEC chair
- Bitcoin broke above the $100K milestone on Thursday after its normal correction.
- The BTC rally was fueled by Trump’s announcement on Wednesday that Paul Atkins would replace Gary Gensler as SEC Chair.
- BTC enters a price discovery mode with a technical outlook suggesting a target of $113,000.
Bitcoin’s (BTC) price breaks its all-time high (ATH) of $99,588, surpassing its $100K milestone on Thursday after recovering from its recent pullback since last week. On Wednesday, announcing that Paul Atkins would replace Gary Gensler as Securities & Exchange Commission (SEC) Chair added fuel to BTC’s rally. BTC has entered price discovery mode, with analysts eyeing a target of $113,000.
Donald Trump nominates Paul Atkins as the next SEC Chairman
President-elect Donald Trump confirmed on Wednesday that he has nominated Patomak Global Partners CEO Paul Atkins as the next Chairman of the Securities & Exchange Commission (SEC). This announcement positively impacted the crypto market, as Atkins is considered pro-crypto. Bitcoin’s price increased 2.8% on Wednesday, and the rally continued, surpassing the $100K milestone on Thursday.
Bitcoin breaks above the six-figure mark
Bitcoin price breaks above its ATH level of $99,588, surpassing its $100K milestone on Thursday after recovering from its recent pullback since last week. At the time of writing, it trades higher above $103,000.
If BTC continues its upward trend, it could extend the rally to test its 141.40% Fibonacci extension level drawn from the November 4 low of $66,835 to the November 22 high of $99,588 at $113,147. A successful close above this level could extend an additional rally toward the psychologically important $125K level.
The Relative Strength Index (RSI) on the daily chart reads 72, trading above its overbought level of 70. Traders should be cautious when adding to their long positions because the chances of a price pullback are increasing. Still, the RSI is still pointing upwards, so there is the possibility that the rally continues and the indicator remains above the overbought level.
BTC/USDT daily chart
If BTC declines, it could extend the correction to retest its $90,000 support level.
Bitcoin, altcoins, stablecoins FAQs
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
Author
Manish Chhetri
FXStreet
Manish Chhetri is a crypto specialist with over four years of experience in the cryptocurrency industry.
