Bitcoin (BTC) became the focus of the market by rising above $100,000 for the first time with the momentum it gained during the week.
While the reasons for this historic rise in the market continue to be discussed, Citigroup analysts said that Bitcoin exceeded $100,000 thanks to the positive regulatory environment and macroeconomic supports in the USA.
Citigroup stated in a recent report that Bitcoin’s recent surge above $100,000 was due to the US elections and the appointment of cryptocurrency lover Paul Atkins as SEC chairman, Coindesk reported.
At this point, analysts stated that the upward momentum that started after Donald Trump won the elections was supported by factors such as a positive macroeconomic environment and increasing spot Bitcoin ETF inflows.
Analysts led by Alex Saunders stated that the last upward move needed to break $ 100,000 was Trump's appointment of Paul Atkins as SEC chairman, and said, “The nomination of cryptocurrency friend Paul Atkins as SEC chairman provided the final momentum that allowed Bitcoin to exceed $ 100,000 and reach record levels.”
Analysts also noted in the report that there has been a decline in BTC dominance and said that altcoins other than Bitcoin could see greater gains due to regulatory relaxation.
“A new regulatory framework that would come with Trump’s election could expand the use cases for cryptocurrencies and elevate Bitcoin’s position as an asset class.
Altcoins other than Bitcoin will also benefit from this environment.”
*This is not investment advice.
