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Trump’s Inauguration Sparks New Optimism in Cryptocurrency Market
In a recent discussion at the World Economic Forum held in Davos, Switzerland, Brian Armstrong, the CEO of Coinbase, expressed his belief that the new Trump administration could foster significant investment into cryptocurrencies. He anticipates that forthcoming legislation could catalyze a wave of fresh capital into the sector.
Armstrong remarked, “The Trump effect cannot be denied. Having the leader of the largest economy express intentions of supporting cryptocurrency could positively influence the market.” His comments were brought to light by Reuters during the panel session.
In a notable development, Bitcoin reached an impressive all-time high of over $109,000 just after Trump’s inauguration as the 47th president of the United States. Armstrong linked this surge to political sentiment surrounding the new administration’s stance on cryptocurrencies.
However, this upward momentum proved to be fleeting, with Bitcoin experiencing a decline of nearly 3% by Tuesday morning, settling around $104,000. Market analysts noted that this drop stemmed from a general disappointment regarding the lack of any immediate actions from the new president concerning cryptocurrency and digital asset policy.
Currently, the global cryptocurrency market capitalization has dipped more than 2%, amounting to $3.58 trillion, largely influenced by the overall decline in Bitcoin’s price.
Speculation surrounds Trump’s initial moves regarding cryptocurrencies, particularly his earlier promise to create a national Bitcoin reserve upon taking office. Alexander Blume, the CEO of Two Prime, emphasized that failing to act on this promise could lead to backlash against the administration.
Nevertheless, the potential for a more crypto-friendly regulatory landscape in the U.S. may expedite the acceptance and integration of Bitcoin and subordinate digital assets into the broader economy. In a significant shift, Gary Gensler, the Chair of the Securities and Exchange Commission (SEC) and an outspoken critic of cryptocurrencies, announced his resignation. This change sets the stage for Trump’s expected appointment of Paul Atkins as his successor, pending Senate confirmation.
Gensler’s exit is perceived as a victory for the cryptocurrency community which has long contended with stringent regulations imposed by his administration. During his tenure, the SEC initiated numerous high-stakes enforcement actions against major cryptocurrency platforms, including Coinbase and Binance, with crypto-related complaints constituting 18% of the agency’s total grievances.
As the landscape of cryptocurrency regulation continues to evolve under the new administration, stakeholders will be keenly watching for any forthcoming policies that could shape the future of digital assets in the United States.
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Source
finance.yahoo.com