After enjoying a brief rally, crypto stocks reversed course on Thursday as Bitcoin (BTC-USD) soared to an all-time high of over $100,000. This record was accelerated by the news that President-elect Donald Trump will nominate crypto-friendly Paul Atkins to head the US Securities and Exchange Commission (SEC).
Bitcoin traded as high as $103,500 early Thursday, but fell below the $100,000 level later in the day.
Coinbase (COIN) stock rose as much as 5% Thursday morning, but ended the trading day down more than 3%. Despite the losses, the stock price rose more than 80% over the year.
MicroStrategy (MSTR) — the software company that is the largest corporate investor in Bitcoin and has adopted the cryptocurrency as the Treasury's main reserve asset — saw its stock rise more than 8% before changing direction . Bitcoin miner Riot Platforms (RIOT) rose more than 6% early Thursday, but quickly reversed course. MicroStrategy and Riot were down nearly 5% by market close.
Owen Lau, executive director and senior analyst at Oppenheimer, warned investors about Bitcoin reaching record levels in a recent interview with Yahoo Finance.
“My best advice is, once you get to the $100,000 level, watch out,” Lau said. “There's selling pressure and people may be looking for the next breakout level.” As Yahoo Finance's David Hollerith reported, Atkins doesn't want to stifle innovation or impose unnecessary oversight. Supports virtual currency regulation that does not.
Atkins will replace Gary Gensler, who led a major crackdown on the industry at the SEC. The agency has regularly pursued actions against crypto fraud, ranging from small fines against unregistered brokers of crypto assets to large-scale lawsuits against FTX, Coinbase, and Binance.
While Gensler's SEC supporters believe it's time for the industry to face shady transactions by a number of actors, crypto advocates (even within the agency) are threatening to attack the sector. He said that aggressive campaigns are stifling innovation.
Trump’s election is seen as a major positive for the crypto sector.
The president-elect attended the annual Bitcoin conference in July during the campaign period. Her opponent, Kamala Harris, also expressed support in this area.
Securities and Exchange Commissioner Paul Atkins speaks in Washington, May 7, 2008 (Reuters/Molly Riley) (USA) · Reuters/Reuters
In addition to Atkins, other members of Trump's cabinet are also considered crypto supporters, including Vice President-elect J.D. Vance and several of Trump's presidential candidates who have invested in cryptocurrencies through asset holdings or business interests in the past. Exposures to and are discussed.
President Trump's transition team is reportedly discussing the possibility of creating a new role in the White House: a “crypto czar” to oversee Bitcoin policy.
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