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Bitcoin rises above $107,000 in early Wednesday trading after the US Securities and Exchange Commission (SEC) announces plans to overhaul cryptocurrency regulations. Bitcoin is up by 4%, trading at $105,585, having reached a high of $107,180 during the day. Ethereum, the second-largest cryptocurrency, climbs 2.8% to $3,322.
The SEC introduces a new task force dedicated to creating a regulatory framework for digital assets, marking a significant move by the Trump administration to address cryptocurrency policy. This initiative boosts investor confidence in the administration’s approach, even though the topic wasn’t included in his initial executive actions.
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.
Cryptocurrencies, particularly Bitcoin, continue to dominate the financial landscape, having been introduced in 2008 by the anonymous Satoshi Nakamoto. While Bitcoin promises a decentralized financial system, it faces criticism for facilitating untraceable payments and supporting illegal activities.
